On November 05, 2003, Far East Telecom’s Board of Directors decided on the date for placement of its D1-series bonds – November 19, 2003.
The bonds are being issued for three years, in the amount of Rub 1 bln. Federal Securities Commission registered the issue and emission prospectus on July 18, 2003(state registration number is 4-09-30166-F).
The issue is to carry six half-year coupons. The first two will be set by the issuer after the underwriting competition (to be held on the placement date). Annual rates of the 3rd and 4th coupons were fixed at 15%, and the 5th and 6th at 13%.
Far East Telecom has announced an irrevocable public offer for the redemption of the bonds upon the expiration of two years in circulation at 100% of par value.
The bonds will be placed on the Moscow Interbank Currency Exchange (MICEX) by public subscription.
Trust Investment Bank is the issue’s lead manager, underwriter, and payment agent.
ABK Investment Company is the financial consultant of the issue.
Far East Telecom intends to allocate the proceeds from the issue for implementing its investment scheme, which provides for the development of telecommunications networks and expansion of the company’s cellular business.
Far East Telecom is the leader of the Far East’s telecommunications market. The company provides communication services in the Primoriye and KhabarovskTerritories, Amur, Kamchatka, Magadan, Sakhalin, and the Jewish Autonomous Republic. Charter capital amounts to Rub 1,267,503,220 and is divided into 95,581,421 common and 31,168,901 preferred shares. The company’s stocks are traded on benchmark RTS (Russian Trading System) and MICEX. Far Easthas launched a level-1 ADR program, with J.P. Morgan acting as the depositary bank. The principal stockholder of Far East Telecom is Svyazinvest, holding 50.6% of the voting shares and a 38.1% interest in the company’s charter capital. Foreign investors own more than 25% of the company’s charter capital.