The Board of Directors of Siberia Telecom passed a resolution on December 26 to place an interest-bearing pay-to-bearer coupon bond with central custody (series 04) valued at Rub 2 billion and a three-year maturity.  The par value of the issue will be set at Rub 1,000 (one thousand) per bond.  The issue will be placed via public subscription.

The placement will be made during the first six months of 2004 on MICEX.

The arranger for the issue is AKB Promsvyazbank (ZAO). Co-underwriters of the issue are AKB Promsvyazbank (ZAO), ZAO KB Guta Bank, and AB IBG NIKoil.  The investment consultant for the issue is ZAO Investment Company ABK.  Execution of Siberia Telecom’s bond obligations is securitized by ZAO Eniseitelecom.

Funds earned from the issue and sale of bonds are to be allocated to developing existing and acquiring new telecom facilities, upgrading telecom equipment, raising the digitalization level and rolling out value-added telecom services.