OREANDA-NEWS. November 23, 2010. OJSC North-West Telecom set the interest rate for the eleven coupon of the North-West Telecom’s bonds issue 05 at 5.87% 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 11th coupon was equal to 3.75% per annum at November 22nd, 2010, the interest rate for the 11th coupon was set at the level of 5.87% per annum.

*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.

The fifth-issue bonds are interest-bearing documentary bearer bonds with mandatory central storage, issue 05 (state registration number 4-05-00119- А of October 23, 2007) placed at the Stock Exchange 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 RUR 1 000. The maturity period is 5 years. The bonds’ coupon is paid on the quarterly basis. Now there are 1 400 437 outstanding bonds. The bonds are included in the RF Central Bank’s Pawn List, are accepted by the Bank of Russia as collateral for direct REPO deals and are included in the quotation list A1 of the Moscow Interbank Currency Exchange.