Events Archive
Horizon's experts acted as advisors on OAO Lukoil's private placement of the company's 5.9% stake in the form of ADRs
The end of 2002 marked a successful completion of another major project for Horizon. The unique experience of the company's experts made it possible for them to act as advisors on the private placement of OAO Lukoil's 5.9% stake
in the form of ADRs. The seller for OAO Lukoil's shares was the project privatization company
established by the Russian Federal Property Fund. Morgan Stanley acted as Global Coordinator and Lead Bookrunner for the project. The funds generated by the sale amounted to USD 775 million. This project was unique in that it was the first privatization transaction to sell depository receipts for the shares of a Russian company to a vast pool of foreign investors. The structure of the deal allowed the flexibility to react to the changing market environment and to secure the best price for the state-owned stake.
Successful issuance of OAO Gazprom's 7-year Eurobonds
In November 2002, Horizon acted as Financial Advisor to OAO Gazprom during the placement of the company's 7-year Eurobonds;
the transaction was successful despite a difficult market environment. The placement of Eurobonds allowed OAO Gazprom
to raise USD 700 million in the international market (with an additional placement). Gazprom's Eurobonds
were placed at nominal value with a 10.5 percent annual yield and provided investors with a call option after 3 years of circulation. The investment community welcomed the placement and noted the fact that the terms of the transaction proved to be fairly reasonable for Gazprom given the unfavorable market environment resulting from the Brazilian crisis. Almost 60 percent of the issue was placed with managers of investment funds and 20 percent with investment banks, including Russian banks, with the remaining instruments placed with private investors.
Horizon acted as Financial Advisor on OAO Gazprom's issuance of ruble-denominated bonds.
Horizon acted as Financial Advisor to OAO Gazprom during the issuance of bearer secured non-convertible Series A2 bonds. The issue was registered with the Federal Commission for the Securities Markets (FCSM) of the Russian Federation on 25 October 2002. The size of the issue was 5 million instruments with a nominal value of RUR 1,000.00. The bonds had a 1,080-day maturity. The instruments provided for 6 coupons payments with a 180-day coupon payment period. The coupon interest rate was set at 7.5 percent of the nominal value for each coupon payment period. The minimal price for the placement of OAO Gazprom's Series A2 bonds amounted to 98.81 percent to the nominal value. The National Depositary Center acted as the Depository for the instruments. OAO Industry and Construction Bank and Renaissance Capital Investment Group acted as Arrangers for the issue.
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