24 Aug 2009 13:09

Russia's Southern Telecom to select exchange for placement of 10 bln rubles in bonds on Sept 16

KRASNODAR. Aug 24 (Interfax) - Russia's Southern Telecommunications Company (UTK) will hold an open auction on September 16 to select a financial organization that will host the placement of seven bond issues for 10 billion rubles, the company said in a statement.

Bids to take part in the auction can be submitted from August 25 to September 14. The starting (maximum) contract price is 129,000 rubles on the first three bond issues and 104,000 rubles on the last four issues. The declining increments will be 6,450 and 5,200 rubles, respectively.

The company said earlier that it planned to place seven bond issues in a public subscription in 2009-2010: three issues for 2 billion rubles each and four issues for 1 billion rubles each. The company plans to place a total of 10 million one-year bonds with face value of 1,000 rubles.

Sviaz Bank has been selected to arrange the placement.

UTK told Interfax that it would use the funds raised from the placement to finance current activities.

Southern Telecommunications Company is the largest fixed communications operator in the Southern Federal District, and provides local and long-distance communications services, in addition to Internet, IP-telephony, ISDN, VPN, and cable television services.

The company's main shareholder is Svyazinvest with 38.16%.