On November 21^st, 2003, in compliance with its coupon payment schedule, Volga Telecom transferred RUR 41,140,000 to the payment agent for payment of the 3^rd coupon against the series BT-1 bond issue  placed on MICEX on February 21^st, 2003.

According to the issue’s prospectus, coupons are to be paid out on a quarterly basis, with the 3^rd coupon’s annual rate fixed at 16.75%.

The issue is valued at RUR 1 bln, 1 mln bonds, maturity – 3 year. Price of placement equals par value – RUR 1,000.

Payment agent of Volga Telecom’s coupon is MDM-Bank.

The primary goal of the bond issue is to help raise the company’s profit margin. Volga Telecom is currently implementing a number of large-scale high-profitability telecommunication projects aimed at developing the telecom facilities of the Volga Federal District. VT is expanding its cellular business with the aid of funds attracted through the bond issue. Incidentally, Volga Telecom bought a 50% interest in the leading Nizhny Novgorodcellular communication operator Nizhny Novgorod Cellular Communication from the RTDC holding company for $20 mln, becoming the 100% owner.

Aside from the cellular business, the company invested returns from the bond issue in developing its interregional multi-service communication network, which is being created on the base of existing data transmission networks of the company’s regional branches.