OREANDA-NEWS. On 31 January  Mobile TeleSystems OJSC, the largest mobile phone operator in Russia and the CIS, announced the redemption of its $400 million Eurobond which matured on January 30, 2008.

The bond was redeemed using the Company’s own cash and available financing activities. Coupon payments for the entire period, including the last coupon, which took place simultaneously with the issuance of repayments, amounted to $195 million. The Eurobond was issued in January 2003 in the amount of $400 million with a semi-annual coupon rate of 9.75%.

The capital raised through the bond placement was used for corporate purposes, including the financing of the Company’s acquisition program in Russia and the CIS.

Following the completion of the redemption, the Company’s current total debt is now approximately $3.0 billion. MTS has two further bond issues currently outstanding: a $400 million 8.375% Mobile TeleSystems Finance SA bond placed in October 2003 which is due in 2010, and a $400 million 8% Mobile TeleSystems Finance SA bond placed in January 2005 that is due in 2012.