VimpelCom issues ruble bonds in the equivalent amount of approximately $ 303 million
VimpelCom (which operates under the Beeline trademark) today announced that it has issued Russian ruble-denominated bonds through LLC VimpelCom-Invest, a consolidated Russian subsidiary of VimpelCom, in an aggregate principal amount of 10 billion Russian rubles, which is the equivalent of approximately $ 303 million at today's Central Bank of Russia exchange rate. The bonds are guaranteed by VimpelCom. The bonds are due on July 08, 2014. Interest will be paid semiannually. The annual interest rate for the first four payment periods is 15,2%. VimpelCom-Invest will determine the annual interest rate for subsequent periods based on market conditions. Bond holders will have the right to sell their bonds to VimpelCom-Invest when the annual interest rate for subsequent periods is announced at the end of the fourth payment period.
The proceeds of the offering will be used for refinancing of VimpelCom's existing indebtedness denominated in foreign currency and the development of VimpelCom's core business.