Khanty-Mansiysk – The Federal Service for Financial Markets (FSFM) registered a report on the results of a bond issue by UTair-Finance on December 14, 2004.

In accordance with the report, the issuer placed 1 million interest-bearing non-convertible documentary bearer bonds of the 01 series with a par value of RUR1,000.
The total amount of the issue at the par value is RUR1bn.

As reported earlier, bonds of UTair Finance Ltd., totaling RUR1bn, were placed on MICEX on November 24, 2004. The placement, based on open subscription, was conducted in the form of an auction, intended to determine the interest rate for the first and second coupons for the bonds.

Investors submitted 46 bids during the placement. The overall demand during the auction reached RUR1.122bn, and the suggested annual coupon interest rate varied from 12 percent to 13.5 percent. The annual interest rate for the first and second coupons was 13 percent. The effective interest rate for the bonds against the annual offer was 13.42 percent.

The entire bond issue was sold at the morning trading session on the first day of the placement.

The issue of interest-bearing documentary bearer bonds with compulsory centralized storage by UTair Finance Ltd. was registered by the Federal Commission for the Securities Market of Russia on April 29, 2004 (state registration number 4-01-36059-R); the maturity period for the bonds is 2 years; the bonds have 4 biannual coupons.

The bonds are guaranteed by UTair Aviation JSC. Additionally, the issuer published an irrevocable offer to buy back the bonds in 1 (one) year after the placement date at a price that equals 100 percent of the par value. The organizer of the issue was Vneshtorgbank. The co-organizers of the issue are Nomos Bank, the Region Investment Group and the Khanty-Mansi Bank.

More detailed information on the structure of the bond issue is provided in issue documents and the informational memorandum for the issue, published on the websites of the issuer (www.utair.ru) and the organizers (www.vtb.ru, www.nomos.ru, www.regnm.ru and www.khmb.ru).