LUKoil has announced plans on disseminating its bonds totaling $300m among foreign investors. Later the securities will be converted into Global Depositary Receipts (GDR) issued for LUKoil shares, the company's press service reported. LUKoil's common shares are traded in the form of ADRs at the London Stock Exchange. The bonds and GDRs are also expected to be admitted there.
The issue, whose initial volume is $270m, may be increased by another $30m, in accordance with a decision of the company's top managers over the first 30 days after the close. The maturity of the bonds is 5 years. Holders may redeem bonds by converting them into LUKoil shares at any time after a 40-day period since the date of the beginning of the issue.
Bonds are to be issued under LUKoil's guarantees. The Russian government has never used and will never use its shares in LUKoil for issuing convertible bonds.
Revenues from this issue will be used to pay off current debt obligations and to invest in promising projects in the sector of oil production in Russia.
Morgan Stanley & Co. International Ltd. and UBS Warburg have been appointed as the leading managers of the issue.
Ukrainians are fleeing the cities that could be taken by the Russian army. Apartment prices have already dropped by as much as 50 percent in Kharkiv. Housing sales have increased in Odessa as well, even if compared to 2022