| main terms of Central Telecom’s third corporate bond issue are as follows: RUR 2 billion, and maturity of three years. The bond was issued with an 18-month coupon. The price of the placement was 100% of par value. On the first day of placement the annual yield was fixed at 12.35% as a result of the MIXEC auction, which corresponds to a yield to 12-month option equal to 14.27% and yield to maturity of 12.73%. The next five coupons are the same size as the first coupon.
The placement took two days to complete, September 16 and 17, as was provided for in the placement regulations. On the first day an auction was to fix the coupon rate. By the end of the auction 72 bids had been taken for a total sum of RUR 1,162,778,000. The rest of the bond issue was placed on the second day. Thus, the third bond placement by Central Telecom had been completed by 6 p.m.Moscowtime on September 17.
The issue was underwritten and arranged by MDM Bank and Troika Dialog brokerage house.
OAO Foreign Trade Bank also took part in the issue as co-arranger and ZAO Guta Bank was involved as co-underwriter.
The payment agent for the issue was MDM Bank.
Central Telecom is one of Russia’s biggest super-regional companies, set up in 2002 in conjunction with the restructuring of Svyazinvest holding. The company operates in 17 constituencies of Central federal district of Russiaand provides a wide array of telecom services, including traditional voice, Internet, data transmission, air and cable television, a network of wire and VHF broadcasting, etc. The company provides services to over 5.6 million subscribers and has an installed capacity exceeding 6 million lines. Central Telecom accounts for 20% of all the revenue and 24% of all the access lines run by Svyazinvest holding. Central Telecom launched two corporate bonds on the MIXEC and RTS fixed income markets in 2001 and 2002.
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