According to the issue prospectus, 1,500,000 bonds will be placed at Moscow Interbank Currency Exchange (MICEX) through open subscription. The face value of one bond is RUR 1,000. The issue's total amount is RUR 1.5 billion.
Bonds mature on the 1820th day from the date of the placement start. The bonds are not callable. The issue has 10 equal coupon periods of 182 days each.
The bidding will be held in the form of reverse Dutch auction to define the interest rates on the first 4 coupons. AKB IBRD will be the authorized underwriter. Bids will be accepted by the bank by noon on April 28, 2004. By the close of the business day the issuer will analyze the bids submitted, make the decision on the interest rate of the first 4 coupons and make the allocations.
At least 10 days prior to the date of the 4th coupon period expiry (April 17, 2006) Moscow City Telephone Network will determine the interest rates on the following coupon periods and communicate them to the investors. In case the rates determined by the issuer do not meet the expectations of the holders, Moscow City Telephone Network shall redeem the bonds from such holders on the second day of the 5th coupon period according to the decision of the Board of directors as of April 27, 2006.
The issue is managed by the Foreign Trade Bank, Reiffeisenbank Austria and the Moscow Bank for Reconstruction and Development.
PJSC Moscow City Telephone Network is one of the biggest not only in Russia, but among the local wire telecommunications companies in Europe too. The Company's continual priority task is to provide quality telephone communication accessible to the millions of the Russia's capital-city inhabitants. The MGTS personnel of 20 000 persons supply services to about 4.2 million subscribers. The telephone density in Moscow conforms to the European standards - over 50 MGTS telephones per 100 metropolitan residents. There are about 600 MGTS telephone exchanges in operation, and their number increases year by. There are presently 18 000 pay stations available at the Company's public payphone network. To date, the MGTS share amounts to 80% in the Moscow fixed telecommunications market. The dynamic development of the Company is noted for its stable economic situation, prescheduled on-going income growth rate, and for the amount of provided services on the upgrade. The Central Office of PJSC MGTS is located in Moscow at 12, bdg. 3, Petrovskiy Boulevard, Moscow, Russia. The Company's Internet address is www.mgts.ru.
For further details, please approach the Department of
Information and Public Relations - PJSC MGTS.
Tel: +7 (095) 950 0623, fax: +7 (095) 950 0622,
E-mail: pressa@mgts.ru
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