Svyazinform carried out placement of its ruble bond issue on November 4, 2004.  All in all, 158 bids worth RUR 4.5 mln were made during the auction to determine the yield on the first coupon.  The rate for the first coupon was fixed at 9.99%.  Effective yield to maturity is 10.24%.  Moreover, 98% of the bids were accepted.  The issue was fully subscribed.  

The arrangers of the issue were Industrial and Construction Bank (Saint Petersburg) and ABK Rosbank.  The co-arranger was Svyaz Bank.  Svyazinvest acted as the coordinator of the project. 

CEO of Uralsvyazinform, Vladimir Rybakin, had the following to say about the issue: “The placement was a success and we achieved the targets we set for raising funds.  We would like to thank investors for their trust in the company and we intend to faithfully fulfill all of the obligations we’ve undertaken, as we have always done and will continue to do. All proceeds from the issue will be allocated to the company’s investment program, which will allow us to continue stable growth and solidify Uralsvyazinform’s market positions.  In addition, by restructuring its commercial liabilities, the company will be able to lower its expenses on debt servicing”.