OREANDA-NEWS  On 21 November was announced, that Ukrtelecom completed a bonds placement worth USD 43 mln (UAH 250 mln). The bonds coupon rate is 15% for the first four quarters, and will be reset on either July 1, 2009 or July 1, 2010 depending on the market interest rate. The company plans to spend this money developing its mobile network (3G) as well as broadband access. The issuing of bonds will increase Ukrtelecom’s long-term debt by 10% to USD 460 mln (at the current exchange rate) resulting in 2008E 2.6x net debt to EBITDA and 0.3x Debt- Equity ratio.

Ukrtelecom’s investment in the development of 3G mobile connections is timely, as competition in the 3G mobile sector is set to intensify because the National Commission of Communication Regulation has just announced a tender for 3G licenses, which is likely to attract Ukraine’s leading mobile players: MTS and Kyivstar. This would result in Ukrtelecom losing its monopoly position in the mobile 3G sector.