Nizhny Novgorod, February, 2004: In accordance with the approved schedule for coupon yield payout, Volga Telecom transferred Rub 41,590,000 to its payment agent on February 18 in order to pay out the fourth coupon of its VT-1 series bond, which the company placed on Febuary 21, 2003 on MICEX.

According to the issue prospectus, payouts are to be made on a quarterly basis.  The annual yield rate on the fourth coupon is 16.5% or Rub 41.59 per bond. 

The total value of the issue is Rub 1 billion with 1,000,000 bonds placed.   Term to maturity is three years. Par value of the issue is Rub 1,000.  MDM Bank is the payment agent of Volga Telecom and is in charge of paying out coupon yields. 

The main purpose of the bond issue is to raise the company’s profit margins.  So far, Volga Telecom has implemented a number of large-scale and highly profitable telecom projects aimed at developing telecommunications facilities in the Volgafederal district.  Using the proceeds raised from the issue, Volga Telecom plans to roll out its cellular business.  On top of that, funds raised from the issue will be invested in the development of an inter-regional multi-service telecom network, which is being established on the basis of existing data transmission networks of the company’s regional branches.