URSA Bank tenders for 7%, 8.3% notes

New York, March 16 - URSA Bank, OJSC announced a tender offer for the €400 million 7% loan participation notes due 2010 and the €300 million 8.3% loan participation notes, both issued by URSA Finance plc, formerly known as Sibacademfinance plc.

Pricing will be set by a modified Dutch auction.

URSA Bank is offering to buy up to €60 million of each series of notes, and a maximum of €100 million in total. The allocation to each series of notes will be set by the issuer. The 7% notes currently have €302.918 million outstanding, while the 8.3% notes have €275.994 million outstanding.

If the offer is oversubscribed at the purchase price set by URSA, the bank will first accept non-competitive offers, followed by those below the purchase price and finally those at the purchase price on a pro rata basis.

URSA Bank will pay at least €900 per €1,000 principal amount for the 7% notes and €780 per €1,000 principal amount for the 8.3% notes.

Holders will also receive accrued interest up to but excluding the settlement date.

URSA said it is carrying out the offer to "optimize its liability portfolio and reduce the cost of its debt."

Funding will come from available cash.

The tender expires at 12 p.m. ET on March 23. Pricing and the amount of each series of note to be accepted will be announced at 6 a.m. ET on March 24. Settlement is scheduled for March 26.

The dealer managers at Citigroup Global Markets Ltd. (European Liability Management Desk at +44 (0) 20 7986 8969 or liabilitymanagement.europe@citi.com) and ING Bank NV, London Branch (Debt Capital Markets at +44 (0) 20 7767 5107 or debt.syndicate@uk.ing.com).

Citibank, NA (+44 (0) 20 7508 3867 or exchange.gats@citi.com) is the tender agent.

The offer is not being made in the United States and in the United Kingdom will only be open to investment professionals.

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