20 Jul 2009 15:08

North-West Telecom to begin placing 3 bln rubles in bonds in Aug

MOSCOW. July 20 (Interfax) - North-West Telecom (NWT) plans to begin placing a sixth series of bonds totaling 3 billion rubles in early August, Raiffeisenbank, one of the issue organizers, said in materials.

The bonds will circulate for 10 years. They bear quarterly coupons.

An offer to purchase the bonds is planned two years after placement at 102.5% of par.

The coupon rate guidance is 13.5%-14.5% annually. The coupon will be set for the entire 10-year life of the bonds. The yield guidance to the two-year offer is 15.5%-16.5% annually.

In addition, the issue provides for call options at 100.25% of par three years and six years after placement.

Sviaz Bank organized the issue. Raiffeisenbank, Baltic Finance Agency and ING Bank (Eurasia) are the joint organizers.

NWT currently has the 3rd-5th bond series totaling 8 billion rubles in circulation.

It was reported earlier that MICEX approved placement of four series of NWT exchange bonds totaling 4 billion rubles. Not all of those series have been placed.

NWT is the incumbent fixed-line operator in Russia's northwest. Svyazinvest owns 50.76% of voting shares (39.528% of equity).