Nizhny Novgorod, February 2005: On February 16, 2005 Volga Telecom transferred Rub 37,810,000 through its payment agent MDM Bank to pay out income on the eighth coupon of its VT-1 bond issue.  Payment date will be on February 21, 2005.  

The yield on the eighth coupon is 15% or Rub 37.81 per bond.

The main features of the issue are as follows: total nominal value – Rub 1 bln; number of bonds – 1,000,000; face value – Rub 1,000 per bond; term to maturity – 3 years.

The issue provides for twelve coupon periods each with duration of three months.  The annual coupon rate on the first two coupons is 4.75%; 16.5% on 3-4; 15% on 5-10 and 13% on 11-12.  

Volga Telecom transferred a total of Rub 37.8 mln to pay for the eight coupon of its bonded loan.