OREANDA-NEWS. In August 2007, UniCredit Group successfully completed syndication of a loan for the total amount of US$100,000,000 (Credit) for Open Joint-Stock Company North-West Telecom (OAO Severo-Zapadny Telecom). Representing UniCredit Group in the syndication are International Moscow Bank (IMB) acting as Organizer and Initial Lender, and Bank Austria Creditanstalt AG acting as Book-runner and Agent, reported the press-centre of UniCredit Group.

The loan for the total amount of US$100 million is granted without security and is provided in two equal tranches:

Tranche А - for the amount of US$ 50 million with maturity in 3 years;

Tranche B - for the amount of US$ 50 million with maturity in 5 years.

Interest rate is based on LIBOR plus 0,95% per annum for Tranche A and 1,25% per annum for Tranche B. Interest rate offered by UniCredit Group to North-West Telecom is, as for today, the lowest in Russia for fixed telecom operators.

Syndication of the loan is accomplished on the European capital markets among Western investors. The deal is closed with significant re-subscription. The overall amount of applications from investors totaled US$170 million. However, the final amount of the loan will not be revised.

North-West Telecom will use the funds received to finance its investment program and refinance its short-term liabilities.

Successful completion of the syndication for North-West Telecom confirms UniCredit Group’s considerable strategic interest in Russia’s market. UniCredit Group is determined to favor Russian companies aiming to enter international capital markets and further assist in diversification of financial instruments for Russian borrowers.

UniCredit Group:

With a current market capitalization of approximately ?70 billion, ranking among the top financial groups in Europe, UniCredit has a presence in 20 core countries worldwide, with over 35 million clients and 7,200 branches, approximately 142 thousand employees and total assets of approximately ?846 billion as of 31 March 2007.

Open Joint Stock Company North-West Telecom (OAO “Severo-Zapandy Telecom”)

NWT is the largest and by far the only universal operator of fixed telecom on the North-West of Russia. NWT has 10 subsidiaries.

The licensed territory of the Company covers the whole North-West federal district with overall area of 1,7 million sq. m. and 13,6 million inhabitants. Installed capacity of telecom network is of 4,7 million nom. The level of digitalization of local network is 56,7%. Installed capacity of wideband access is of 122,4k xDSL ports.

By S&P information transparency index, OAO NWT ranks no. 8 among top-70 Russia’s leading companies listed on Moscow Interbank Currency Exchange (MICEX).