Russia's giant LUKoil firm began accepting tender applications from Western financial institutions to underwrite an ambitious convertible bond issue which will be sold abroad, senior LUKoil spokesmen have said.


Spokesman Dmitry Dolgov gave no details on which firms were bidding to place 350,000 LUKoil bonds on Western markets. Each bond will convert into 170 LUKoil-Holding shares after April 5, 1996.


LUKoil's convertible bond prospectus for the 2.3 trillion ruble (about $510 million) issue is only available to bidders, Sergei Malyukov, head of the tender commission, said.


The issue includes 140,000 bonds to be sold to Russian investors at a later date.


The zero-coupon paper carries a minimum bid price of 4.5 million rubles. Underwriters must place the bonds within 30 days.


A senior London banker said LUKoil had not yet received approval from the U.S. Securities and Exchange Commission for its American Depository Receipt program, a key part of the deal because it allows foreign ownership of the LUKoil shares outside Russia.


LUKoil could receive approval in 40 days, he said.