Moscow, 04 March 2002; Sibneft successfully reopened its recent Eurobond for an additional $125 million following strong demand during its initial floatation. The tap carries a yield to maturity of 10.96% and was launched at a value of 102. The additional amount brings the five-year Eurobond total to $375 million, the largest Eurobond issue by a Russian company.

“We are pleased about the interest shown by such a broad range of investors,” remarked Eugene Shvidler, president of Sibneft. “International capital markets will play an increasingly important role in Sibneft’s development, and the response to our offering is a strong sign support for our company.”

Proceeds from the Eurobond, which carries a coupon of 11.5%, will be used to finance capital expenditures and decrease short-term debt. The bond carries a Ba3 rating from Moody’s Investor Services, while Sibneft also has a Ba2 local currency rating. Both ratings have a stable outlook.

The additional funding will be settled within two weeks.

“The increase is a win-win for investors and the company,” remarked Aidan Freyne, Managing Director of Fixed Income Syndicate, Schroders Salomon Smith Barney. “The offering will broaden the company’s investor base, increase liquidity, and diversify its financing sources without disturbing the secondary market for the initial investors.”

Sibneft was the first Russian company to issue a Eurobond. The $150 million three-year bond was launched in August 1997 through Salomon Smith Barney and redeemed in August 2000. In March 1998, Sibneft issued a $200 million six month zero-coupon promissory note which was arranged by Salomon Smith Barney. This note was successfully redeemed in September 1998.

Contact:

Josh Tulgan
Sibneft
Tel: +7 095 777 3116
joshua@sibneft.ru
www.sibneft.ru