OREANDA-NEWS On 06 October 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, announced that on October 1, 2009 public tender was held for the right to stipulate non-revolving credit lines with a credit limit of RUR 3 bln.

Three lending institutions – MInB OJSC, Bank VTB OJSC and Bank of Moscow OJSC - took part in the tender.  The maximum rate provided for in the agreement was 16,5%.  Bank of Moscow was declared to be the winner in the first part of the tender after entering a bid for the lowest interest rate, equal to 13,86%, under the credit worth 1 billion roubles. 

Bank VTB was declared to be the winner in the second and third parts of the tender after entering bids for the lowest interest rates, equal to 14,44% and 14,52%, for extending two Rub 1 bln non-revolving credit lines.

A lending agreement will be concluded with these lending institutions for extending non-revolving credit lines once the transaction has been approved by the Company’s Board of Directors. Materials of the tender can be viewed here.