print version 

Find company
Home About the ProjectContact usFor the Clients
Enter code or ISIN
 
alpha / industry search

Issuers' Corner
Press Releases
Annual Reports Library

Financial Statements
SEC & FFMS Filings
Corporate Presentations
GM Materials
Issues Documents
Corporate Governance Materials
Russian Company Guide
Company Profiles
Corporate Calendar
Markets Corner
Consensus Estimates
Media Corner
News Line


Get updates



Home  Issuers' Corner  Press Releases REGISTER LOG IN

Press Releases

company search
all press releases
all North-West Telecom press releases

North-West Telecom

March 3, 2005

North-West Telecom’s bonds issue has been fully floated during a day

Today OJSC North-West Telecom’s series 03 Bonds issue has been floated.

The issue with the volume of RUR 3 billion has been successfully floated during one day with a keen demand of investors.  

The Bonds were floated at the MMVB stock exchange.  In the course of the stock exchange auction, the rate of the 1st coupon was established as 9.25% per annum, which is much lower than the minimum boundary of the ranges forecasted by leading investment banks prior to the floatation.  The rates of the 2nd-12th coupons are equal to the rate of the 1st coupon. Thus, the efficient profitability to the offer (date of the 12th coupon payment) makes 9.57% per annum.

The fact that the rates have been established at a level so attractive for the issuer can be explained by investor’s demand – they have appreciated the financial standing of North-West Telecom and the attractive parameters of the issue.  The total volume of the applications for the purchase of NWT’s Bonds has been RUR 7.4 billion, which is 2.5 times higher than the volume of the issue. 38 applications have been satisfied in the course of the floatation.  

With the new issue of Bonds, North-West Telecom wins a position in the market of rouble bonds, corresponding to the status of one of the biggest interregional communication operators.       ‘The current state of this sector makes the participants of the market pay special attention to the financial indices and development strategy of issuers, and the successful floatation of North-West Telecom confirms the compliance of the company with the highest requirements of investors’, Maxim Tsyganov, the managing director of Web-Invest Bank says.    

OJSC NWT’s Bonds circulation period is 6 years, with the right of early presentation of bonds for redemption after three years.  A stage-by-stage retirement of the 3rd issue bonds is provided for. The retirement is to be effected in parts on the following dates:  on the 1820th day from the date of floatation start – retirement of 30% of the face value, 

  • on the 2002nd day – retirement of 30%
  • and on the 2184th day – retirement of 40% of the Bonds face value.

The funds from the loan floatation will be allocated for refinancing the short-term debt and improvement of the company’s liabilities structure and for financing NWT’s investment programme.  

‘The tasks of extending the periods of loans and making them cheaper, that the company set when preparing the issue, have been fulfilled – this is the biggest long-term loan of North-West Telecom floated on conditions very profitable for the company. We are sure that the keen interest of investors in our securities during the primary floatation will ensure active secondary trading.  We will continue the work of optimizing the company’s capital structure and improving the efficiency of using the attracted funds’, V.A. Khusnutdinova, NWT JSC Chief financial officer, commented on the floatation results.

The organizer of the issue is Web-Invest Bank, the co-organizer is AKB Svyaz-Bank, co-underwriters are Vneshtorgbank, Gazprombank, Promsvyazbank, Bank SOYUZ, Bank of Moscow, WBRD, Eurofinance-Mosnarbank, Bank CentroCredit, Raffeiserbank Austria, International Bank of Moscow, Russian International Bank, ING Bank (Eurasia), Industry and Construction Bank, NOMOS Bank, FK URALSIB, BK REGION.

 

 

 

Search by industry

Agriculture, Foresty and Fishing | Chemicals | Engineering | Ferrous Metals | Financial, Insurance & Real Estate | Food & Kindred Products | General Construction | Information Technology | Media & Publishing | Non-Ferrous Metals | Oil & Gas | Pharmaceuticals | Power Industry | Precious Metals and Diamonds | Telecommunications | Transportation | Wholesale & Retail Trade

Search by alpha index

A B C D F G H I K L M N O P R S T U V W X Z


Site Map
© RUSTOCKS.com
Privacy Statement | Disclaimer