CBS Investment

Tomorrow we will know the outcome of the issue of Alliance Oil Company shares in the amount of 100 million dollars and placement of convertible bonds of 225 million dollars. Alliance Oil, which is controlled by the family of the President of Group «Alliance» Musa Bazhaeva became the first Russian company that went to a public distribution of shares from the beginning of the crisis. Analysts believe that the company chose a good time for entering the market and will use the funds primarily for the liquidation of its short debts, which in the first quarter were just under 410 million dollars.

Alliance Oil announced the start of the open placement of convertible bonds for 225 million dollars and shares in the new issue in the form of Swedish Depository Receipts (SDR) for 100 million dollars yesterday. Code Listing of bonds, maturing in 2014, will take place on the Luxemburg Stock Exchange. The loan may be repaid in three years if the price of SDR exceeds 130% of the value of bonds. The papers provide a quarterly coupon rate which will be determined in the range of 6.75 – 7.5%. SDR is expected to remain listed on NASDAQ OMX Nordic. According to a source familiar with the situation, the book of applications will be closed today, it is passing without a price corridor, and the results of the deployment are scheduled to make public on Friday.

It is expected that the winter Olympic Games in Sochi in 2014 will be clean and «green». Its organizers have committed themselves to the proper disposal of waste, economic usage of water and electricity, the observance of cleanliness and careful attitude to the environment in general.

The United Nations Environment Program (UNEP) signed a Memorandum of Understanding. It is aimed at protecting the environment during the preparations for the Olympics and its implementation with the Russian National Committee for the Olympic Games.

Under this Memorandum, UNEP will provide technical support for Russia in its efforts to organize «environmentally friendly» Olympics.

At the signing ceremony the representative of UNEP Teodore Aubin stated that he hoped that the new arrangements would be a sort of guarantee that during preparation and holding of competitions measures will be taken to protect nature in Sochi and the whole Krasnodar region as well.

According to the stated level, China plans to increase the proportion of expenditure on scientific research work to 2.5%, increase the contribution of scientific progress in economic development more than twice and reduce dependence on imported technologies three times by 2020. One of the priorities of China is to enter the top five countries by number of issued patents and the number of references to scientific publications, as well as to take a leading position in science and technology. China apparently is tired of being called the workshop of the world’s cheap consumer goods. It is time for production of high-tech products. And it cannot be realized without innovation.

However, it is clear that innovation comes along with money, or after it. So, it was necessary to take steps that would allow investors to feel comfortable on the Chinese soil. And Chinese took into account that fact – only 30 years of reform China has attracted $ 860 billion in foreign direct investments to its economy. During this same time, 650 000 enterprises with foreign participation were created, which not only eliminated the dependence of a number of industries from imports, but also became the leading suppliers to the world market. As a result, China went to the first position in the field of high-tech engineering products, ensuring 500 per cent increase in exports of manufactured goods from the level of 2002.