OREANDA-NEWS. On 28 July 2008 VolgaTelecom announced the result of a public tender held to select the lending institution to provide financial services pursuant to the conclusion of agreement to extend credit. The tender was announced by VolgaTelecom o nJune 2, 2008.  Two lending institutions applied for the tender: UniCredit Bank ZAO (for lots 1, 3 and 4) and Banque Societe Generale Vostok ZAO (for lot # 2).

In accordance with the legislative requirements and the terms of the tender documentation, lending agreements are to be stipulated for lots # 1, 3 and 4 with UniCredit Bank on the following terms and conditions:

- for lot # 1 – A Rub 300 mln loan is to be provided for a term of 36 months at MOSPRIME1M+ 3.2%;

- for lot # 3 – A Rub 800 mln loan is to be provided for a term of 48 months at MOSPRIME1M+ 3.4%;

- for lot # 4 – A Rub 400 mln loan is to be provided for a term of 60 months at MOSPRIME1M+ 3.6%;

As for lot # 2, an agreement for the provision of a Rub 500 mln for a term of 36 months (with depreciation) at the rate of MOSPRIME1M+ 2.75% is to be stipulated with BSZhV Bank.

The proceeds raised are to be used to finance the current and investment activities of VolgaTelecom.  This is the second time the company has resorted to a public tender with a floating MOSPRIME* interest rate to raise long-term loans.

More detailed information on the results of this public tender can be viewed at http://www.vt.ru/8211.

*MOSPRIME rate is the Moscow Prime Placement Rate for termed deposits; it was introduced on the Russian monetary market in April 2005. The average arithmetic value of listed rates is taken without counting the highest and lowest of these rates. In addition, the MOSPRIME rate for the purposes of a credit agreement is determined as an independent and benchmark rate calculated on the basis of rates applied to ruble deposits on the Moscow interbank lending market, according to the National Currency Association on the basis of the rates offered by the eight leading banks which signed the Agreement on participating in the formation of the MOSPRIME benchmark for a term of 1 (one) month and posted on the Internet at www.nva.ruaround 12:30 Moscow time.