20 Oct 2009 15:44

Bashneft may begin placing 50 bln rubles in bonds before year-end

MOSCOW. Oct 20 (Interfax) - Bashneft may begin placing 50 billion rubles in bonds before the end of 2009, AFK Sistema Senior Vice President Alexei Buyanov told journalists.

"If we can manage it, in the fourth quarter, if not, in the first quarter of 2010," he said.

"We will see what the appetite on the market is," he said in response to a question about volumes.

VTB Capital is the organizer of the issue.

The proceeds from the placement will go to restructuring the group.

"New purchases with that money are not planned," he said.

AFK Sistema plans to create a vertically integrated oil company around Bashneft. It plans to sell the oil company controlling stakes in other Baskortostan fuel and energy companies for a total of 41 billion rubles. Bashneft is issuing 50 billion rubles in bonds to finance the deal.