On May 23, 2003 Volga Telecom made the first coupon payout on its series BT-1 bond which the company placed on MICEX on February 21, 2003.  This bond is currently listed and traded on MICEX.

According to the terms of the issue prospectus coupon payouts are to be made on a quarterly basis, with the first coupon carrying a 4.75% annual yield.

The amount of bonds in the issue is equal to 1,000,000, which are valued at Rub 1 billion.  Term to maturity is three years.  Placement value was equal to par value - Rub 1,000.

Total payout on the first coupon amounted to Rub 11,840,000.  Revenue paid out per bond was equal to Rub 11.84.

The main purpose of the bond issue is to raise funds for the company's business development.  At present Volga Telecom is implementing a number of large-scale and highly profitable telecommunications projects aimed at expanding telecom facilities in the Volga Federal District.  In particular, Volga Telecom plans to use the funds raised from the bond issue to upgrade the company's cellular business.