OREANDA-NEWS. On 25 August 2008 wCenterTelecom OJSC announced that interest of 9.3% per annum, or RUR46.37 per bond, will apply to the fifth coupon on its Series 5 bond.

The 9.3% rate was set by order of Vaagn Martirosyan, General Director, CenterTelecom OJSC, and, in accordance with an earlier decision by CenterTelecom’s Board of Directors, will also apply to the sixth, seventh, eighth, ninth and tenth coupon payments.

As a consequence of partial redemptions scheduled for 2010 and 2011, provided for in the issuing documents, amounts payable against subsequent coupons will decline from RUR41.74 on the eighth coupon, RUR32.46 on the ninth, to RUR18.55 on the tenth.

The Company's Series 5 bond issue consisted of an interest bearing documentary non-convertible bearer bond subject to mandatory centralized custody (state registration #4-20-00194-А dated June 15, 2006). Three million Series 5 bonds with RUR1,000 nominal value each were placed by way of public offering on the MICEX Stock Exchange on Sept. 5, 2006. The placement price was established in accordance with issuing documents and amounted to 100% of nominal value. Interest on the first coupon was set at 8.09% per annum as a result of an auction held on the day of placement and approved by Order of the General Director of CenterTelecom. Rates for the second, third and fourth coupons were equal to the rate on the first coupon. Interest rates on remaining coupons were to be established by the issuer in accordance with Clause 9.3 of the Decision on Issuance of Securities and Clause 9.1.2. of the Securities Prospectus. The bonds are to be redeemed in the amount of 10% of the nominal value on the 1,274th day after the placement date (March 2, 2010), 20% of the nominal value on the 1,456th day after the placement date (Aug. 31, 2010), 30% of the nominal value on the 1,638th day after the placement date (March 1, 2011), and 40% of the nominal value on the 1,820th day after the placement date (Aug. 30, 2011). Investors are permitted to sell the bonds on Sept. 4, 2008 on condition of irrevocable public offer.