OREANDA-NEWS. Southern Telecommunications Company (“UTK”) [(RTS: KUBN, KUBNP; МICEX: UTEL, UTELP; ADR OTC: STJSY, KUE FRA)], the principal fixed-line telecommunications provider for Russia’s Southern Federal District, reports that its Board of Directors took a decision to place 05-series  non-convertible interest-bearing  documentary pay-to-bearer bonds with the mandatory centralized custody, numbering 2 million (two million) items with Rub 1,000 (one thousand) face value each (Minutes № 30 оf 26 March 2007).

The bonds will be placed by public subscription on ZAO MICEX Stock Exchange trading floor. Starting date of the Bond placement will be determined by "UTK" PJSC after the state registration of the bond issue.

During the first and the following days of the bond placement the bonds are to be placed at the price of 100 (one hundred) percent of their face value, which is 1,000 (one thousand) roubles.

ZAO Russian Industrial Bank acts as the issue’s Financial Consultant. OAO AKB Svyaz-Bank is to act as the issue’s Arranger and Payment Agent. Underwriter of the issue is LLC “UTK-Finance”.