On December 21, 2012, Bashneft completed the buyout of series 01, 02 and 03 documentary interest-bearing non-convertible bonds (hereinafter referred to as the ‘Bonds’) with the par value of 1,000 roubles per bond under the obligatory offer made on December 3, 2012 after a new coupon rate was set at 8.35%; the rate will be applicable until the Bonds are redeemed in December 2016.

Under the offer, Bashneft bought back 1,502,074 series 01 Bonds, 1,842,651 series 02 Bonds and 2,876,040 series 03 Bonds with the total par value of 6,220,765,000 roubles not including the accrued coupon yield as of the buyout date. The buyout of series 01, 02 and 03 Bonds was organized by CJSC VTB Capital.

‘We are satisfied with the results of the offer,’ said Alexey Kurach, JSOC Bashneft’s Vice President for Economics and Finance. ‘The owners of almost a half of outstanding Bonds of the first series have not submitted buyback requests after the new coupon rate had been set at the level lower than the current yield curve; this indicates high investor confidence in the Company’s securities.’

Note: Series 01, 02 and 03 documentary interest-bearing non-convertible bonds (state registration numbers 4-01-00013-A, 4-02-00013-Àand 4-03-00013-Àas of November 17, 2009) with obligatory centralized custody have a par value of 1,000 roubles per bond; the total par value of the bonds amounts to 50 billion roubles. Series 01, 02 and 03 bonds have a maturity period of 7 years (2,548 days) and a put option after 3 years.

On October 31, 2011, as part of an additional offer under the agreement with the bond holders, JSOC Bashneft completed the buyout of 38,496,305 series 01, 02 and 03 Bonds worth a total of 40,421,121,300 roubles.