Sibneft's Eurobonds Programme Extended Time and a Half

The Sibneft oil company has extended its eurobonds issue program from the worth of $250 million to $375 million, investors eagerly seeking to purchase them. The additionally issued eurobonds were placed on the market with a half year-termed 10.96% APR coupon, the initial issue with an 11.5% APR coupon. The money received from the sale of the eurobonds will be used as a capital investment. Moody's rating of the issue is Ba3. The rating of Sibneft's rouble bonds is Ba2. Moody's forecast as to the two ratings is stable.

Sibneft was the first Russian company to issue eurobonds. The issue worth $150 million was placed on the market in 1997, matured and cancelled in August 2000. In March 1998, Sibneft issued $200 million worth of 6 months-termed eurobonds, no coupon. Both issues were underwritten by Salomon Smith Barney.