PRO KAPITAL

ANNOUNCEMENT



ABOUT ISSUE OF EUROBONDS



On 06.03.2001 prospectus of AS Pro Kapital Grupp eurobond issue

was approved at the law office Studio Chiomenti Legale in London.

Representatives of Meliorbanca S.p.A. Deutche Bank AG London, 

Deutche Bank Luxembourg S.A., Morgan Guaranty Trust Company of New

York and Studio Chiomenti Legale signed the respective documents.



Pro Kapital Grupp will issue eurobonds in value of EUR 35 mln, 

at nominal face values of EUR 1,000, EUR 10,000 and EUR 100,000. 

The issue price of eurobond is equal to its nominal face value.



Interest calculation and payments are made quarterly.

The interest rate is 3-months EURIBOR (based on the data at Reuters 

Terminal under subsection Euribor 01 one day prior to interest 

calculation date) + 4.5% margin. The redemption payments are made 

simultaneously with the last interest payment in March, 2004.



As of 07.03.2001 Pro Kapital Grupp eurobonds will be listed

on the Luxembourg Stock Exchange.

Grounding on the data of Meliorbanca S.p.A., as of 07.03.2001

the investors have subscribed eurobonds in value of EUR 25 mln.

The money will be transferred to the account of Pro Kapital 

Grupp within a week.

 

AS Pro Kapital Grupp intends to use the proceeds from eurobond issue 

to expand its activities and to acquire and develop new projects. 

The Management Board of Pro Kapital Grupp has made a proposal to 

the Supervisory Board to use the proceeds from the eurobond issue 

for investments into shopping center in Riga (located on the 

premises of former VEF factory). Development of several hotel 

projects in Italy or France have also been under discussion.





Ilona Saari

Board member, PK Group

+372 614 4924