On October 9, 2002, OJSC North-West Telecom made the second coupon payment to holders of the registered interest-bearing bonds (issue registration number 4-01-00119-?).

The annual interest rate for the second coupon was 19%. The coupon payment totaled RUR 14.2 million and has been made in full by the due date with CJSC Telecombank acting as the paying agent.

Although on the date of the coupon payment OJSC North-West Telecom made an irrevocable offer to its bondholders to exercise their right to redeem the bonds before the maturity date, no demand on early redemption of the bonds had been made, which indicates a high level of investor trust in OJSC North-West Telecom as a first class borrower.

For the period from June10, 2002, to October 1, 2002, trade volume of Company’s bonds was more than 90,000 bonds or about 30% of the issue volume. The figures demonstrate a high level of liquidity of the Company’s bonds trading on the Moscow Interbank Currency Exchange (MICEX), the Saint-Petersburg Currency Exchange (SPCEX) and OTC.

The next (third) coupon period is 6 months, the coupon payment to be made on April 10, 2003. OJSC North-West Telecom has made an irrevocable offer to its bondholders to redeem the bond on coupon payment date at 96.78% par value. The coupon rate of 18% is set for the third coupon and will then be lowered to 16%.

Summary of terms of OJSC North-West Telecom documentary bearer bonds, Series 01 :

Issue volume: RUR 300 million, bond par value – RUR 1,000;

Maturity period: 730 days;

Coupon period: 3 months for the first two coupons, 6 months for the 3^rd, 4^th and 5^th coupons.

During the whole maturity period the issuer plans to periodically make irrevocable offers on bond redemption.  

The issue was placed on April 10, 2002, on two stock exchanges, the MICEX and the SPCEX simultaneously. The following banks act as market makers for the issue:

CJSC Telecombank;

OJSC MDM Bank;

OJSC MENATEP Saint-Petersburg Bank.

The bond issue was registered by the Russian Federal Commission for the Securities Market (FCSM) on March 5, 2002, and the issue placement report was approved by the FCSM on May 15, 2002. OJSC North-West Telecom bonds were included in the listings of both the MICEX and the SPCEX at the end of May 2002.