On 25th July 2008 an application of the only bidder –UniCredit Bank ZAO – for the right of making a General Agreement of Providing the Services of Arranging a Syndicated Loan in the International Market of Capital s was considered.

In compliance with clause 3 of article 36 of the Federal Law "On Placing Orders for Deliveries of Goods, Performance of Works and Provision of Services for State and Municipal Needs" No. 94-FZ of 21.07.2005, the auction was considered as having failed to take place. It is expected that the General Agreement of Providing a Syndicated Loan of 200,000,000 US dollars* to North-West Telecom will be concluded with UniCredit Bank no later than 20.08.2008.

Loan’s detail s:

• Amount of loan: 200,000,000 US dollars*;
• Maturity period: 3 years;
• Loan rate: LIBOR + 275 b.p.;
• Repayment of the loan: on a quarterly basis, in equal installments, starting from the date coming 15 months after the Agreement of Loan is signed.

The attracted funds will be used for funding the investment programme and for refinancing the floating debt.  

*$150,000,000 of the Loan are to be completely provided by UniCredit BankZAO, but the Bank will not participate in providing another $50,000,000, however, UniCredit Bank ZAO undertakes to exert all efforts to arrange such a provision before signing the Agreement of Loan,, provided the Bank will be to achieve a reduction of its share of participation to $30,000,000 by syndication.

Information on other syndicated loans of OJSC N.W.Telecom can be found in the Syndicated Credits section of the corporate website.