HÜVITUSFOND

ANNOUNCEMENT



TERMS AND CONDITIONS FOR ISSUE OF XVII-SERIES BONDS



According to the resolution of the Supervisory Board of 

the Hüvitusfond (Compensation Fund), the XVII-series bonds 

will be issued on the following terms and conditions: 



1. Volume of the issue is EEK 20,000,000.

The Fund will issue 200,000 bonds at nominal face value of EEK 100.

2. The issue is public. The issue will take place from 15.05.00 until 

26.05.00.

3. In the course of the issue the bonds are sold to private and 

corporate investors for Estonian Privatization Vouchers (EVP). 

Offer price per one bond is 205 EVP or EEK 100.

4. Yield: -7% (on EEK basis)

5. Value date: 27.05.2000 

6. The Fund will redeem bonds on 27.05.2002 at nominal value.

7. Bonds are nominal, issued in dematerialized form.

8. The issue is registered with the Estonian Central Depository for 

Securities. The initial offering of bonds will be intermediated by 

account operators of Estonian Central Depository for Securities - 

Eesti Ühispank, Hansapank, Optiva Pank, Krediidipank, Preatoni Pank.

9. Hüvitusfond will pay fixed interest of 7% of bond's nominal value 

annually. In addition the Fund will also pay additional interest, 

the size of which will be determined by the Fund's Supervisory Board 

twice per year.

10. Interest payments will be made to investors once per year on May 27.

11. Interest income from Hüvitusfond bonds is exempt from income tax.

12. Bonds are freely disposable on the secondary market.

13. Bonds are fully backed with privatization revenues and other 

assets of the Fund.



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

the Securities Inspectorate on 04.05.2000 under registration code 

RVPA 313.





Jaanus Kosemaa

Public Relations Manager

+372 66 51 800