Home Credit & Finance Bank successfully places its third domestic bond issue

Moscow, 09/22/2005

Home Credit & Finance Bank (HCFB) is pleased to announce the successful placement of a RUB 3 billion (approx. US$ 105 million) bond issue in the Russian market.

The bonds have a 5-year maturity with an embedded put option after 18 months and a fixed coupon paid quarterly. The notes had been placed through a public auction at the MICEX Stock Exchange and the first coupon was set at 8.25% p.a. The first six periods will have the same coupon rate as the first period; the issuer will reset the coupon in the following periods at no less than 5%.

The bond issue attracted strong interest and high quality demand from nearly 50 Russian and foreign investors and the issue was 1.4 times oversubscribed.

The proceeds of the bond issue will be used to fund further rapid expansion of HCFB in the Russian consumer finance market.

Vneshtorgbank and Raiffeisenbank (Russia) acted as joint lead-managers for the bond issue. The underwriting syndicate included: International Moscow Bank, Rosbank, Renaissance Capital, Dresdner Bank, Nomos Bank, Bank Petrocommerce, Eurofinance Mosnarbank, Bank Soyuz, Standard Bank, and IG "Region".

This is HCFB's third domestic issue following the RUB 3 billion bond issued in May 2005 and a RUB 1.5 billion issue placed in October 2004. In 2005, the bank also placed successfully two issues in the international bond markets: a USD 150 million Eurobond issue in February and a USD 275 million Eurobond issue in June, reaffirming HCFB's strong reputation among the international investor community.

Commenting on the placement, Andrey Lykov, the Chairman of the Management Board said: "The 3rd domestic bond issue attracted high demand from Russian and international investors. The success of this transaction is the result of HCFB's sound business development strategy in Russia and the outlook for further growth, which were confirmed by the bank's significant achievements to date and by its leading position in the Russian consumer finance market."

09/22/2005