Issue of Debt

1 Nov 2007 07:00

Oao Gazprom01 November 2007 PRESS-RELEASE Moscow November 1, 2007 NOT FOR DISTRIBUTION IN THE US, CANADA, JAPAN OR RUSSIA OJSC GAZPROM PLACES BENCHMARK ISSUES OF YEN 20 BILLION AND YEN 30 BILLION OF LOAN PARTICIPATION NOTES On 31st of October OJSC Gazprom placed benchmark issues of Yen 20 billion ofloan participation notes due 15th of November, 2010 and Yen 30 billion of loanparticipation notes due 15th of November, 2012. The notes will be issued by GazCapital S.A., a Luxembourg special purpose vehicle, under Gazprom's LoanParticipation Note Programme. The loan participation notes were priced at par. The notes due 15th of November,2010 have an annual coupon of 2,63%, and the notes due 15th of November, 2012have an annual coupon of 2,89%. Nikko Citigroup and Mizuho International plcacted as joint bookrunners with respect to the notes. The proceeds of the offering of the notes will be used to finance a loan to OJSCGazprom, the proceeds of which will be used to refinance short-term debt and forgeneral corporate purposes. OJSC GAZPROM INFORMATION DIVISION These materials are not an offer for sale of any securities of OJSC Gazprom inthe United States. Any securities of OJSC Gazprom may not be offered or sold inthe United States absent registration or an exemption from registration underthe U.S. Securities Act of 1933, as amended (the "Securities Act"). OJSCGazprom does not intend to register any portion of the offering in the UnitedStates or to conduct a public offering of any securities in the United States.The securities will be sold only to non-U.S persons in accordance withRegulation S under the Securities Act. This communication is only being distributed to and directed only at (a) personswho are outside the United Kingdom or (b) investment professionals fallingwithin Article 19(5) of the Financial Services and Markets Act 2000 (FinancialPromotion) Order 2005 (the "Order") or (c) high net worth entities, and otherpersons to whom it may lawfully be communicated, falling within Article 49(2) ofthe Order (all such persons mentioned in (a), (b) and (c) together beingreferred to as "relevant persons"). Any securities mentioned in thiscommunication will only be available to, and any invitation, offer or agreementto subscribe, purchase or otherwise acquire such securities will be engaged inonly with, relevant persons. Any person who is not a relevant person should notact or rely on this document or any of its contents. This document is not a prospectus and, to the extent that it may constitute anadvertisement, it does not constitute an offer to sell or the solicitation of anoffer to purchase notes or other securities of Gaz Capital S.A. or OJSC Gazprom.Investors should not subscribe for any notes referred to in this documentexcept on the basis of the information contained in the final prospectus and/orfinal terms relating to the notes. Investors will be able to obtain a copy ofthem from Deutsche Bank AG, London Branch, 1 Great Winchester Street, LondonEC2N 2DB, United Kingdom, Deutsche Bank Luxembourg S.A., 2 Boulevard KonradAdenauer, L-1115, Luxembourg and Deutsche International Corporate Services(Ireland) Limited, 5 Harbourmaster Place, IFSC, Dublin, Republic of Ireland, asPaying Agents and from Gaz Capital S.A. at 2 Boulevard Konrad Adenauer, L-1115,Luxembourg. This press release is not a public offer or advertisement of securities in theRussian Federation, and is not an offer, or an invitation to make offers, topurchase any securities in the Russian Federation. phones: (495) 719-28-01 fax: (495) 719-90-08 e-mail: pr@gazprom.ru http: // www.gazprom.ru This information is provided by RNS The company news service from the London Stock Exchange