OREANDA-NEWS  On 27 November was announced, that  VolgaTelecom Board of directors made the decision of establishing the procedure of determination of interest rate of the seventh and the eighth coupons of VolgaTelecom inconvertible interest bearing certified bearer bonds of BT-2 series subject to obligatory centralized custody.

The interest rate of the seventh and the eighth coupons of VolgaTelecom inconvertible interest bearing certified bearer bonds of BT-2 series subject to obligatory centralized custody is determined at 13% per annum.

The yield on the seventh coupon due to payment under one bond amounts to RUR 51,86. The obligation of payment of the bonds seventh coupon should be discharged on June 02, 2009. The yield on the eighth coupon due to payment under one bond amounts to RUR 38,89. The obligation of payment of the bonds eighth coupon should be discharged on December 01, 2009.

VolgaTelecom Board of directors has made the decision of acquiring floated OJSC VolgaTelecom’s inconvertible interest bearing certified bearer bonds of BT-2 series subject to obligatory centralized custody on the 3-rd business day of the 9-th coupon period as per the procedure and on terms and conditions set forth in “Offer of acquisition by Open Joint Stock Company VolgaTelecom of OJSC VolgaTelecom’s inconvertible interest bearing certified bearer bonds of BT-2 series subject to obligatory centralized custody”.

For more detailed information about the Offer terms and conditions, please, visit the Company’s site: http://www.vt.ru/?id=10414.

VolgaTelecom’s inconvertible interest bearing certified BT-2 series bonds were floated on December 06, 2005 at MICEX by public offering. On January 11, 2006 Russia’s Federal Financial Markets Service (Russia’s FFMS) registered the report on the results of the issue of OJSC VolgaTelecom’s inconvertible interest bearing certified bearer bonds of BT-2 series (the issue state registration number: No 4 – 44 – 00137).

Characteristics of BT-2 series bonds issue:

Inconvertible interest bearing certified bearer bonds subject to obligatory centralized custody of the par value of RUR 1 000 (One thousand). The quantity of the issue securities is 3 000 000 (Three million) bonds. The total value of the bonds issue is RUR 3 billion. The maturity of BT-2 series bonds is 5 years. OJSC JSCB Svyaz-Bank is the issue lead arranger and underwriter.

VolgaTelecom is the largest telecommunications company of the Volga region providing a wide range of telephony, cellular, Internet and data transmission, TV and radio broadcasting services. The Company is operating in 11 regions of the Volga Federal district. The installed capacity of the Company’s network is 5,2 million lines. The Company’s shares are traded at RTS and MICEX. I-level American Depositary Receipts program is effective since 1997; the ADRs are traded at Frankfurt, Berlin Stock Exchanges and USA OTC market.