On 16 September 2005 the Board of the OJSC North-West Telecom ratified the coupon rates for the second series of bonds:  coupons 9 to 16 – 7.5% per year. Therefore the coupon rates is established at the level 5.7 points below the current coupon rate.  The ninth coupon period starts on 5 October 2005. Up to date the total amount of interest paid for the coupons of the second series of NWT bonds is 346.485 million roubles.

The decision about bond issue includes a possibility of redemption of the bonds at par value.  The bond holders can present their bonds for redemption during the period from 22 September until 5 October 2005 inclusive. The redemption will be performed from 5 October to 12 October inclusive, depending on the date of the presentation of the bonds for redemption.  

The paying agent for the offer is CJSC Russian Industrial Bank.

Sergey Statkevich, the director of the financial department of OJSC North-West Telecom notes that “the level of the new coupon rates reflect the high rating of the credit qualities of the OAO NWT at the market and corresponds to long-term financial strategy of the company to reduce its debt service expenses and improve the structure of its liabilities”.

The second series of the OJSC NWT bonds are interest-bearing documentary bonds of the 02 series payable to bearer with obligatory centralized storage. Their state registration number is  4-02-00119-A. The issue was placed at the MMVB on 8 October 2003 and includes 1.5 millions of four-year securities with par value 1 thousand  roubles.

The first coupon rate was determined at the auction as 14.2% per year, the bond yield to the two-year offer constituted 14.46% per year.

Each bond has 16 quarter coupons.

Rates for  the  coupons 1-4: 14.2% per year; (determined at the auction at the time of the placement)

Rates for  the  coupons 5-8: 13.2% per year; (determined at the auction at the time of the placement)

Rates for  the  coupons 9-16: 7.5% (determined by the Board).

The bonds will be repaid in three steps: On the 1092nd ad 1274th day from the date of the beginning of their placement the Company will pay to the bondholders 30% of their par value, on the 1456th day the Company will pay to the bondholders the remaining 40% of the bond par value.