Promsvyazbank gets consents for 10¼% notes, 8½% notes

By Jennifer Chiou

New York, June 14 - Promsvyazbank announced it received consents from holders of more than 80% of each of its 10¼% notes due 2006 and $200 million of 8½% notes due 2010 at the early deadline of 11 a.m. ET on June 13.

Promsvyazbank will pay $5.00 per $1,000 principal amount of notes to those who delivered consents by the early deadline.

The Moscow-based bank obtained the required consents to approve proposed resolutions.

Proposed resolutions include revising the definition of consolidated tier 1 capital adequacy ratio and consolidated tier 1 capital to refer to the consolidated capital adequacy ratio and consolidated capital as well as raising the interest rate of the 8½% notes to 8¾%, effective on Oct. 4.

The notes were issued by Promsvyaz Finance plc on Sept. 29, 2005 to finance a loan to Promsvyazbank.

The bank said it intends to execute and deliver an amendment to the loan agreement and to enter into a first supplemental trust deed to effect the amendments and modifications.

Promsvyazbank said it will have a noteholders' meeting on June 23 and added it expects to settle the tender offer on June 29.

The paying agent is Deutsche Bank AG. The consent coordinator and dealer manager is Citigroup Global Markets Ltd. (44 20-7986-8969).

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