OREANDA-NEWS. May 24, 2010. OJSC North-West Telecom set the interest rate for the nine coupon of the North-West Telecom’s bonds issue 05 at 6.49% per annum.

The method for fixing the coupon rates is established by the Decision on the Issue of Securities. The coupon rate for the 5th issue is floating. It is revised on the quarterly basis and is fixed as the sum of the 3-month MosPrime rate* set on the last day of each coupon period and the premium which was set by auction at the time of issue’s placement. The premium is fixed for the whole maturity period of the bonds and is equal to 212 basis points. To reduce the risk of interest rates rise, the Decision on the Issue of Securities provides a limitation on the maximum coupon rate. Thus, the coupon interest rates may not exceed the maximum interest rate set at 15% per annum.

As the MosPrime rate used for calculating the interest rate for the 9th coupon was equal to 4.37% per annum at May 24th, 2010, the interest rate for the 9th coupon was set at the level of 6.49% per annum.

The fifth-issue bonds are interest-bearing documentary bearer securities with mandatory central storage, issue 05 (state registration number 4-05-00119-А of October 23, 2007), placed at the Moscow Interbank Currency Exchange on May 27, 2008. The volume of the issue is RUR3 billion, the number of bonds is 3 million with the par value of 1 thousand rubles. The maturity period is 5 years. The coupon income on the bonds is paid on the quarterly basis.

*The MosPrime Rate is the rate which ruble credits are given to first-class financial organizations. The rate is calculated by the National Currency Association.