Bank Caspian Issues Debut Eurobonds

On October 11, 2005 Bank Caspian placed its debut 3-year Eurobond in the amount of USD 150 million at 7,875% coupon.

Citigroup Global Markets Limited acted as the sole Lead Manager for the transaction.

The Eurobond was placed at 99.672% Issue Price corresponding to a re-offer yield of 8%.

The Notes were assigned "Ba2" and "B+" by Moody's Investors Service and Fitch Ratings respectively. These ratings coincide with the Bank’s long-term ratings assigned by both agencies.

The geographical distribution of the issue is represented by Asia - 31%, Switzerland – 18%, Great Britain – 17%, USA - 8%, other European countries – 22% and CIS – 4%. Private banks with 48% share became the major buyers of the issue. Banks and Trusts acquired 23% of the total issue and Asset Management companies purchased 16%.

Bank Caspian intends to use the raised moneys to fund its growth in the consumer and SME segments.