The Mobile TeleSystems Joint-Stock Company (MTS) conducted an IPO of five-year Eurobonds, totaling $400m, on January 24, ZENIT Bank, which took part in the IPO, reported. Credit Suisse First Boston was the organizer of the issue, and Mobile TeleSystems Finance S.A., an MTS subsidiary registered in Luxembourg, was the issuer. MTS is the guarantor for the issue. The placement price of the bonds was equal to 100% of the face value. The date of value dating is January 30, 2003, and the date of redemption of the bonds is January 30, 2008. The coupon period is six months, and the annual coupon interest rate is 9.75%. The international ratings Ba3 (by Moody's) and B+ (by S&P) have been assigned to the Eurobond issue by MTS.
The Eurobonds will be offered and sold outside the US by means of making offshore deals in accordance with the US regulations. It is planned to use the funds to be received for corporate needs, including possible purchasing of cellular operators in different regions of Russia and CIS countries.