EESTI ÜHISPANK

ANNOUNCEMENT

26.02.99

 

EESTI ÜHISPANK EURO 50 MILLION BOND ISSUE

 

On February 26, Eesti Ühispank issued  bonds in the amount of Euro  50

Million (EEK 738 Million) with the  maturity of 3 years. The deal  has

been priced to yield 6-month Euribor plus 3.5%.

 

The  bonds  are  due  on  March  12,  2002  but  the  investors   have

put-options after the first and the second year.

 

The bonds are rated Baa3 by  Moody's and BBB- by IBCA. The  bonds will

be listed on Luxembourg Stock  Exchange. Lehman Brothers is acting  as

the sole arranger of the issue.

 

The issue is  being documented under  Eesti Ühispank's DM  800 Million

EMTN Programme. Up to this date, the bank has utilised DM 253  Million

of the total amount of the Programme.

 

The  transaction   is  the   first  East   European  capital   markets

transaction to take  place after the  Russian crisis and  is the first

East  European  non-sovereign  non-governmental transaction structured

in  this  way.  The  issue  is  the  first  one  in  the Baltic states

denominated in Euros.

 

Margus Schults, Vice President

Eesti Ühispank

Ph. + 372 6 110 600