PRO KAPITAL

ANNOUNCEMENT



ABOUT ISSUE OF EUROBONDS



Yesterday the Supervisory Board of Pro Kapital Group authorized 

the company’s Management Board to issue eurobonds in the amount of 

up to EUR 35 Mio, at interest rate of EURIBOR + margin up to 5% 

annually. The bonds will mature in year 2004.



The Management Board will determine the order of interest payments 

and details of redemption of bonds. The Supervisory Board decided 

to authorize the Management Board to conduct all actions, which 

are necessary for listing the bonds on Luxembourg Stock Exchange.



The Management Board has made preparations for issue of eurobonds 

according to the Supervisory Board decision of 15.11.2000. The 

Supervisory Board then authorized Management Board member Mr. Luca 

Antonio Milani to hold negotiations with representatives of Italian 

Meliorbanca regarding the possibilities of issue of eurobonds.



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