Reuters: AVTOVAZ plans to issue certificates of participation in the loan of $100 million

Reuters: AVTOVAZ plans to issue certificates of participation in the loan of $100 million The largest Russian car manufacturer AVTOVAZ plans in 2003 to produce on the international market, credit links, notes, certificates of participation loan), told journalists the Chairman of the Board of Directors of AVTOVAZ Vladimir Kadannikov.Alex Akinshin, senior Vice-President of Vneshtorgbank, financial Advisor to the company, said that the issue could be around $100 million."Credit link notes we are planning this year. It is pointless to go on the market with a total value of less than $50 million. Probably a minimum of $100 million is the amount with which you can work," said Akinshin.Akinshin said that the certificates of participation in a loan available to reduce the cost of servicing existing debt of the company. According to him, in most cases, AVTOVAZ has the right of early repayment of old loans.According to him, AVTOVAZ may also issue bonds before the end of 2003 to refinance a bond issue in the amount of one billion rubles for a period of one year, which will be available in late February on MICEX."AvtoVAZ unprofitable to accommodate "long", as interest rates decline. It is possible that after the summer of AVTOVAZ will be able to block this release," said Akinshin.The annual auction bonds of JSC AVTOVAZ in the amount of one billion rubles will begin on MICEX on February 21. Coupon will be set at the auction for the whole period of bonds circulation.AvtoVAZ plans to use the proceeds from the loan to Finance the production of VAZ-1118 (Kalina).EUROBONDS - NOT BEFORE 2004The Kadannikov said that AVTOVAZ has been working on the issue of Eurobonds."We have hope that in the beginning of 2004 we will be able to solve this issue", - said the Kadannikov, without stating the amount of possible release.According to him, for the development of the plant over the next five years will require $1.05 billion."We have no such money in full no. So we need to find tools cheap borrowing, or need to stagger the introduction of new models," said Chairman of the Board of Directors of the company.In turn, Akinshin said that in 2003 AVTOVAZ will not be able technically to issue Eurobonds, because he is not prepared statements, which must be revealed before release.Source: Reuters20.02.2003.



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