Lukoil places local bonds for $562.7 mln to replace 2023 Eurobonds

MOSCOW. Oct 20 (Interfax) - Lukoil has placed "replacement" bonds for $562.7 million as part of an exchange of Eurobonds maturing in 2023 for local debt securities, the company said in a statement.

The proportion of bonds actually placed out of the total number of securities of the issue which were to be offered, was 37.51%. The bonds at their placement were paid for with Eurobonds, issued by Lukoil International Finance B.V. The exchangeable Eurobonds mature on April 24, 2023 and carry a coupon rate of 4.563% per annum. The nearest coupon payment date on this issue is 24 October.

The parameters of the "replacement" bonds (face value, maturity, coupon) are fully equivalent to the parameters of the corresponding Eurobond issue, and they will be serviced in rubles at the exchange rate of the Central Bank of Russia on the date of payment.

The placement of "replacement" bonds is aimed at protecting the interests of holders of Eurobonds held in Russian depositories, while the company cannot guarantee receipt of future payments on Eurobonds by holders who will not participate in the placement, Lukoil said earlier.

This is the first of the company's five outstanding Eurobond issues to be partially replaced by local securities. Lukoil collected bids in October to replace all five issues of Eurobonds the rights to which are recorded in Russian infrastructure.