Krasnodar, February 10, 2005: South Telecom Company (STC) [(RTS: KUBN, KUBNP; USA OTC: STJSY)], the largest fixed-line operator in the Southern Federal District, announced that on February 9 it fully paid the second coupon for 02-series bonds (YTK-02ob., ISIN RU000A0AUU?0). The second coupon yielding 9.25% per annum totaled Rub 69,180,000. Coupon yield per bond amounted to Rub 46.12. The cut-off date for holders of South Telecom Companyĺs series 02 bonds was January 28, 2005.
The issue of 02-series non-convertible interest-bearing pay-to-bearer bonds of South Telecom Company totaled Rub 1.5 bln with 3-year maturity (1,092 days) and a six-month coupon period (182 days) and carries a call option. At the primary placement (on February 11, 2004 on MICEX) the annual interest rate for the first and second coupons was set at 9.25%. The interest rate for the third and fourth coupons was quoted at 12%, while that of the fifth and sixth coupons is to be determined by the company no later than 10 business days prior to the payment of the fourth coupon. The issue passed state registration under entry #4-06-00062-?on November 28, 2003, with the following trading codes: YTK-02ob., ISIN RU000A0AUU?0. Rosbank acts as the arranger, underwriter and payment agent of the 02-series bond issue. AVK Investment Company is the financial consultant of the bond placement.