North West Telecom placed its 2^nd bond issue in the Moscow Interbank Currency Exchange on Wednesday. Main parameters: volume – Rub 1.5 bln, maturity – 4 years. Coupon duration – 91 days each. The issue provides a put option (at par value, after 2 years from the placement date).

The placement began at 10.15 Moscowtime. By 13.15, 115 order were take, totaling Rub 2,637,944,000. The demand exceeded the issue’s actual volume by more than 75%. Leading Russian investment banks and companies took part in the placement. Sixty one order were processed.

The auction ended with the 1^st - 4^th annual coupon rate fixed at 14.2%, 5^th - 8^th – at 13.2%, in compliance with the issue decision. Thus, the average annual cost of servicing the bond will be 13.7% until the put option.

The underwriters were ZAO Telecombank, AKB MDM-Bank, IB Trust. OAO Svyazinvest coordinated the project.

Upon commenting the floatation of the 2^nd bond issue, Alexei Shalagin, Director of Economics and Finances noted that it went through successfully, and that the market met the issue according to its merit.

The next step will be the approval of the report on the issue by North West Telecom’s BoD and its registration with the Federal Securities Commission.

After the registration, investors will be able to trade in the bonds. North West Telecom intends to go through the procedure of admitting this issue to MICEX and SPICEX trading in November.