NOVATEK SUCCESSFULLY ISSUES $200 MILLION OF CREDIT LINKED NOTES

09 December 2004

Moscow, December 09, 2004. OAO NOVATEK, the largest independent Russian gas producer, has successfully placed Credit Linked Notes (CLN) for $200 million with an eighteen month tenor and a coupon rate of 7.75 percent.

Demand for the CLN, the second CLN issue for NOVATEK this year following the successful $100 million debut issue in April, was extremely high, with the placement approximately 1.5x oversubscribed. The placement involved investors from 13 countries, including 33% placed into Switzerland and 20% into Asia, while UK and offshore US accounts each took 16% with Russia accounting for 8%. The CLN was allocated amongst 63 investor accounts, with private banking/retail taking 44%, hedge funds 20%, financial institutions 19% and asset managers 12%.

The road-show took place in Geneva, Zurich, London and Manila during 2–6 December 2004. The proceeds raised will be used for general corporate purposes.

According to Mark Gyetvay, NOVATEK’s Chief Financial Officer and member of the Board of Directors, «The very successful placement of our CLN to such a diverse investor base demonstrates the growing interest by international investors in the future prospects of NOVATEK, the quality of our management, and our ability to deliver superior financial results in the Russian gas market.»

TRUST Investment Bank and ING Bank N.v. , London Branch acted as lead managers of the issue.


PAO NOVATEK is the largest independent natural gas producers in Russia, and in 2017, entered the global gas market by successfully launching the Yamal LNG project. Founded in 1994, the Company is engaged in the exploration, production, processing and marketing of natural gas and liquid hydrocarbons. The Company’s upstream activities are concentrated mainly in the prolific Yamal-Nenets Autonomous Region, which is the world’s largest natural gas producing area and accounts for approximately 80% of Russia’s natural gas production and approximately 15% of the world’s gas production. NOVATEK is a public joint stock company established under the laws of the Russian Federation. The Company’s shares are listed in Russia on Moscow Exchange (MOEX) and the London Stock Exchange (LSE) under the ticker symbol “NVTK”.

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