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Sibneft Successfully Reopens Eurobond

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.