OREANDA-NEWS  On 18 February 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 reported that Interregional Commercial Bank for Development of Telecommunications and Data Processing (Open Joint –Stock Company) was named the winner of the auction to select a financial organization to provide services to arrange its issue of tradable bonds.

All in all, six applications were received for the auction. The starting (maximum) price of the agreement to provide financial services to arrange the issue of tradable bonds stood at Rub 25 mln. The final bid for Rub 125,000 was placed by Interregional Commercial Bank for Development of Telecommunications and Data Processing (Open Joint –Stock Company).

Additional information:

Applications could be submitted from 27 January till 16 February 2009.

The starting (maximum) price of the agreement to provide financial services to arrange the issue of tradable bonds stood at Rub 25 mln. The price of the agreement proposed by an applicant could not exceed the starting (maximum) price. The starting (maximum) price could be reduced by steps of Rub 1.25 mln.  The submitted applications were examined on 16th February 2009.

Proposed parameters of the bond issue:

Total value: Rub 10 billion

Face value of a bond: 1,000 roubles

Form of the issue: interest-bearing documentary pay-to-bearer tradable bonds with obligatory centralized custody.

Proposed time of the placement: 2009 – 2010

Form of the placement: Public subscription

Maturity date: The Bonds shall be retired on the 364th day from the starting date of the placement.