On January 8 North West Telecom paid out income on its first interest-bearing pay-to-bearer coupon bond with centralized custody (series 02, state registration number 4-02-00119-?).

According to the company’s resolution on the release of coupon interest, payouts are to be made on a quarterly basis.  The first coupon carries a 14.2% annual yield, or Rub 35.4% per bond.  Payment was made on schedule and in full. The total amount of coupon paid out was Rub 53.1 million. 

The payment agent for the coupon payout was ZAO Telecombank. 

The next coupon period will be in three months, with payout scheduled for April 7, 2004.

TERMS OF THE ISSUE:

Interest-bearing pay-to-bearer coupon with centralized custody; series 02, par value of Rub 1,000 (one thousand) each with total par value of Rub 1,500,000,000 (one billion million five hundred million). 

•          term to maturity – 4 years;

•         placement price – par value;  

•          number of coupon periods – 16;

•          duration of coupon periods – 91 days each;

•          annual yield for coupons 5-8 – 13.2%;

•          coupon yields for ninth, tenth, eleventh, twelfth, thirteenth, fourteenth, fifteenth and sixteenth coupons are to be determined by the board of directors of North West Telecom after the end of the eight coupon period;

•          the issue prospectus provides for a call option at par value in two years;

•          yields are payable (callable) by the issuer at par value in three stages:

-          at 30% of par value after 1,092 days from the date of issues;

-          at 30% of par value after 1,274 days from the date of issues;

-          at 40% of par value after 1,456 days from the date of issues.