RusTele.com

MegaFon readies EMTN program totaling up to $1.5 bln

MOSCOW. Sept 3 (Interfax) - The board of directors of Russian mobile operator MegaFon approved preparation of a program of European Medium-Term Notes (EMTN) totaling up to $1.5 billion, the company said in a statement.

The EMTN program provides for issuing short-, medium-and long-term obligations in various currencies.

"Approval of work on the EMTN program brings a whole host of advantages: providing the opportunity to raise finances in a short period and as the need arises; ensuring the company's presence on the international financial market; and strengthening the company's investment appeal and the management's reputation. It will also have a beneficial impact on management transparency," General Director Sertgei Soldatenkov is quoted in the statement as saying.

MegaFon made its debut on the international debt market in 2004, when it placed $375 million in LPN with an 8% coupon. Those obligations mature in December 2009. MegaFon periodically buys those bonds on the market. As of June it had purchased $89 million.

MegaFon is Russia's number three mobile provider by subscriber base. The shareholders are Swedish-Finnish TeliaSonera (43.8%), structures belonging to Alisher Usmanov (31.1%) and Alfa Group subsidiary CT-Mobile (25.1%).