The RSE Management Board resolved on its meeting of October 25, 2001 to

run  a  primary  placement auction of "Hipotēku Banka" 10-year mortgage

bonds on November 2, 2001. 10 000 bonds at total nominal value of 1 000

000  LVL  are going to be sold. Price will be determined at competitive

multi-price  auction  on  the RSE trading system from 11:00 till 12:00.

Maturity  date  of  the  bonds is August 15, 2011, and interest rate is

7.5%  per  annum. According to the RSE Management Board resolution, the

AH  series  mortgage  bonds  will be listed on the RSE Official list on

November  5,  2002.  To  participate  in the auction, investors have to

place  their  bids  with  banks  and  brokerage  companies licensed for

trading  of  public  securities  and  providing custody services. Total

issue  value  of AH series mortgage bond will be of 5 000 000 LVL value

and  interest rate of 7.5%. Coupon payments are twice a year - February

15  and August 15. Aivars Slokenbergs,  RSE vice-president: "Issuing of

bonds  of  longer maturity has become the latest trend not only for the

Government  but  for  corporations  as  well.  Hipotēku  banka  10-year

mortgage  bond  issue  happens to be a public security with the longest

maturity  issued  in  Latvia. Since investors have been demonstrating a

vivid  interest  in  medium-term  and  long-term  debt securities, this

securities issue may be very interesting for the investors"