Lukoil Goes to Bond Market

Lukoil has proposed to 11 banks to become underwriters of its Eurobonds. The bids from banks will be accepted until March 12. It is expected that the company will place its Eurobonds in the second quarter of 2004.

Profitability of the bonds by redemption amounts to 7% and are convertable to GDRs. The six-month coupon yield amounts to 3.5%. The maturity period is five years. Standard & Poor's rated the Eurobonds of LUKoil at 'B'.