HÜVITUSFOND

ANNOUNCEMENT

31.08.99

 

TERMS AND CONDITIONS FOR THE ISSUE OF XV-SERIES BONDS

 

Pursuant to the resolution of the Hüvitusfond Supervisory Board, 

Hüvitusfond will conduct the issue XV-series bonds on the following 

conditions:

 

1. The volume of issue is 20,000,000 Estonian kroons.

The Fund will issue 200,000 bonds, at coupon value of 100 Estonian 

kroons.

2. The initial offering of the bonds will take place from 20.09.99-

08.10.99.

3. During the initial offering period, the bonds will be sold to 

private persons and legal entities for Privatization Vouchers 

(hereinafter EVP). Price of one bond is 271 EVP kroons or 95 Estonian 

kroons.

4. At 7% annual coupon rate, the yield on bonds’ is 10.5% (on EEK 

basis).

5. The Fund will redeem the bonds on 17.05.2001 at coupon value.

6. The bonds are nominal, issued in dematerialized form.

7. The bond issue will be registered with the Estonian Central 

Depository for Securities. The initial offering of the bonds will be 

administered by the account operators of the Estonian Central 

Depository for Securities (hereinafter Account Operators) - Eesti 

Ühispank, Hansapank, Optiva Pank, Eesti Krediidipank.

8. The annual coupon rate of the bonds is 7% of the bond’s coupon 

value. The Fund will also pay additional interest, the size of which 

will be determined by the Supervisory Board of the Fund twice a year, 

based on the Fund’s financial results.

9. Interest payments will be made to the investors once per year on 

17th May.

10. Interest income is exempt from income tax.

11. The bonds are freely disposable on the secondary market.

12. The bonds issued are fully secured with the privatization 

receipts to the Compensation Fund and other assets of the Fund. 

 

The public issue of Hüvitusfond XV-series bonds is registered with 

the Securities Inspectorate on 27th August 1999 under registration 

number RVPA 303

 

 

Jaanus Kosemaa

Public Relations Manager

Hüvitusfond

+372 66 51 800, 824, +372 51 04 614