On July 10th, 2002 OJSC North-West Telecom paid up the first coupon on its document interest-bearing sight bonds (State Registration No. 4-01-00119-?).

The coupon annual interest rate was 20%. The payment was strictly to the schedule and in full. The total amount allocated for coupon payment was about 15 million rubles. CJSC Telecombank is the coupon interest payment agent.

The North-West Telecom drew up an irrevocable quotation on the day of first coupon payment. However, not a single call was filed to exercise the quotation, which indicates a high level of confidence of investors in OJSC North-West Telecom as a reliable borrower.

The amount of bids in OJSC North-West Telecom bonds at MICE and SPCE in June was about 40 million rubles, the total number of transactions being over 30. Considering the size of the issue, these values prove a high level of liquidity of the North-West Telecom bonds.

The next coupon period is also 3 months, and the next coupon payment will take place on October 9th, 2002. The annual interest rate for the second coupon will be 19%.

The essential parameters of the issue of document interest-bearing sight bonds, Series 01, by OJSC North-West Telecom:

• Issue size: RR 300,000,000 at the denominational value. Denominational value of one bond: RR 1,000.
• Bond circulation period: 730 days.
• Duration of the first two coupon periods: 3 months, and of the next three periods, 6 months.

The issuer intends to draw up irrevocable quotations throughout the bond circulation period.

The bonds were placed on April 10th, 2002 at two stock exchanges simultaneously, i.e. at SPCE and MICE. The market makers for the bonds are :

• CJSC Telecombank
• AKB MDM Bank (a public company)
• AKB Bank MENATEP St. Petersburg (a public company)

The bond issue was registered by resolution of Russia’s Federal Securities Board on March 5th, 2002. On May 15th, FSB approved the report on the North-West Telecom bond issue results. Late in May, the bonds were admitted to bids at MICE and SPCE.