If the proposed BTA Bank (Moscow) will be approved, the date of maturity of Eurobonds will be moved to December 21, 2009 to December 21, 2011, a lump-sum repayment of principal will be transformed into amortized repayment.

extension of the scheme announced by the Bank for payment of lump-sum premium to the holders of Eurobonds in excess of scheduled payments of principal and accrued coupon income (SIDS) taking place within the debt service for the duration of extension, the transformation of semi-annual payments to SIDS in the quarterly and the reimbursement of 10% of principal immediately after approval of the extension. This extension of the scheme, in contrast to the frequently used in recent issuers of practice does not include any debt forgiveness.

During his work on foreign markets the Bank has established itself as a good partner, so the proposed scheme extension is aimed at maximizing the interests of the holders of Eurobonds in the existing conditions. The Bank’s determination to provide the most comfortable conditions for investors due to the Bank’s intention to continue to work in the market for foreign borrowing, as this work is one of the priorities of the Bank’s business.

In 2009, the Bank has done significant work on early redemption of Eurobonds, which resulted in the volume of traded securities declined from 100 million to 70 million U.S. dollars. The Bank plans to continue to work to reduce the volume of Eurobonds in the market: the supply of BTA Bank (Moscow) for the holders require repayment of the principal amount of 10% immediately after the approval of the extension, 45% – equal shares of 22.5% in June and December 2010 and the remaining 45% – equal shares of 22.5% in June and December 2011 respectively.

Thus, the Bank reaffirms its commitment to its policy on the market of foreign borrowings, whose basic principle – to meet its obligations full.

– In a period of instability in the economy and the banking sector, securities market participants revise their attitude to the use of existing financial instruments, – says Dmitry Kizenkov, Deputy Chairman, OOO BTA Bank “(Moscow). – With respect to the transaction, then we have reason to believe that the proposals OOO BTA Bank “will be supported by the holders of Eurobonds, as published by the Bank conditions suggest, first, continuing debt service on a more comfortable environment for cardholders during the rollover, Second, lump-sum compensation payments to holders of securities, and, most importantly, the absence of any discounted debt.

To date, the Bank fully performed and domestic commitments, including the Bank Russia. The degree of support and confidence level of the regulator from the Bank of evidence and the fact that the recent signing of agreements on the extension of unsecured loans to the Bank of Russia for a total amount of 11,8 billion rubles.

In the case of approval of their proposals to the holders of Eurobonds The bank will be able to consolidate the positive trends in its business, sending the savings in the development direction of active sales of banking products in the domestic market.

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