On 26th October 2004 a meeting of the Board of Directors of OJSC North-West Telecom was held, that considered the issue of Bonds.    

 Having considered the materials presented for the meeting, the Board of Directors took a decision to float series 01 documentary interest-bearing bonds payable to bearer – three million Bonds with the face value of one thousand roubles each. Thus, the total volume of the Issue will amount to three billion roubles. 

Besides, the Decision on the Issue and the Offering Circular were approved.

Parameters of the third bonded loan of OJSC North-West Telecom:

The Bonds circulation period will be 6 years, with the right of early presentation of Bonds for retirement in three years.  

Bonds will be floated at the face value. The auction will be held at the rate of the first coupon. Other coupons (the issue provides for quarterly payments) will be equal to the first coupon. Upon expiry of the three years’ period the Company will take a decision on determining the coupon rates for the subsequent three years.    

Floating method: public subscription.

The starting date of Bonds floatation will be fixed by the Company after the state registration of the Bonds issue depending on the market situation.       

In the same way as with the 2nd issue, a stage-by-stage retirement of the Bonds of the issue is provided for.

The face value of the Bonds will be retired in piece-meal on the following dates:

• on the 1820th day from the starting date of the issued Bonds floatation – retirement of the first part – 30 per cent of the Bonds face value;  
• on the 2002nd day – retirement of the second part – 30 per cent of the Bonds face value;
• on the 2184th day – retirement of the last part – 40  per cent of the Bonds face value.

LLC NWT Finance, a 100% subsidiary of the Company, especially established for these purposes, will act as the guarantor.

OJSC Web Invest Bank is the organizer of the Bonds issue and AKB Svyaz Bank is the co-organizer. IK AVK is the financial consultant.