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.

Press service of OAO NOVATEK
press@novatek.ru
+7 (095) 721 22 07

Investor Relations Department
ir@novatek.ru
+7 (095) 730 60 20