OREANDA-NEWS. On December 14, 2006, the Series 04 issue of North-West telecom bonds was placed at the MICE Stock Exchange. The issue of RUR 2 billion was fully and successfully placed during one day.

In the exchange auction, the 1st coupon annual interest rate was set at 8.1%, which corresponds to the average value of the range expected by the management underwriters and the issuer prior to the placement. The overall amount of purchase requests for NWT bonds was RUR 2.5 billion. 35 requests were satisfied during the placement. Nearly 30% of the issue was purchased by foreign investors. 

The bonds’ floatation period is 5 years. The bonds are prematurely repayable if so desired by the Company (the so-called call option) on the 728th day from the placement starting date.

The receipts from the debt placement will be allocated to funding of the Company’s investment projects and refunding of the existing credit portfolio.