MOSCOW, February 22 (RIA Novosti) - The Gazprom board of directors has approved the distribution of a eurobond borrowing which is expected to total either 1 billion Euros or 1 billion US Dollars with a three-year-long period of circulation, according to a source in the banking circles.

The period of the bonds' circulation and the currency of the issue will be determined in accordance with the market situation and investment demand following the deal's marketing.

Meanwhile, a Gazprom press release says that the board of directors has approved of a long-term borrowing but does not specify any parameters.

The issue will take place in the first six months of 2005 to attract funds for corporate needs.

"This issue will be the third tranche in accordance with a program on the emission of participation certificates concerning a loan worth up to $5 billion. Under the decision of the board of directors, the transaction will have a structure similar to the previous emissions," said the source.

He said the loan would be granted by a special designated company, Gaz Capital S.A. (Luxemburg), which will issue bonds of participation in the loan and place them among foreign investors.

The board of directors has also approved the receipt of a listing of eurobonds issued by Gaz Captial S.A. at the Luxemburg stock exchange, said the source. Lead managers of floatation in the issue effort will be ABN AMRO Bank and the bank Credit Swiss First Boston.

Addressed to European investors, the maiden issue with a maturity term of seven years, to the tune of 1 billion euros, was a success in 2003. The second issue worth $1.2 billion with a 30-year-long term of circulation was floated among major American and European investors in April 2004.

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