Gazprom decided to issue bond loans totaling 5bn rubles (about $158.48m)this year, the press service of the Russian gas holding reported. Thedecision on issuing bond loans was adopted at a meeting of the company'sboard of directors on August 20, 2002. The first issue is scheduled forOctober-November 2002, the press service pointed out.The issue of bond loans on the domestic market will provide implementationof Gazprom's investment program in the period from 2002 to 2005. Within theframework of the 2002 budget, the Russian government approved the gasgiant's investment program amounting to 140.8bn rubles (about $4.46bn). Apart of this sum is planned to be attracted on the domestic market byissuing bonds.Parameters of the bond issue have been set taking into account the currentsituation on the market and they will enable the company to attract a broadrange of investors and to create a liquid secondary market. In particular,a form of the issue is expected to be interest bearing documentary bondswith a compulsory centralized custody. The bonds are to be placed on thestock market section of the Moscow Interbank Currency Exchange. Thematurity period is 1080 days, the coupon period is 180 days and the couponyield rate will be 7.5 percent of a bond's par value. The price of theissue will be determined at a tender, but it cannot be lower than 98.81percent of a bond's par value. Gasprom is also expected to publish an offerto buy back bonds in 360 days after the issue.Taking into account plans on decreasing the amount of promissory notes,Gazprom plans to use new instruments that will provide the advance in thevolume of attracted resources and optimization of loan structure.Organizers of the issue are the St. Petersburg based Industrial andConstruction Bank and the investment bank Renaissance Capital. The Horizoncompany is the financial consultant..