MOSCOW—The second-biggest Russian carrier Vimpelcom (BeeLine) placed its first euro bonds worth US$250 million to finance network expansion across Russia.
Vimpelcom Vice President Valery Goldin said the bonds will mature in three years, and the coupon yield of 10.45 percent annual will be paid twice a year. He added that the demand for bonds exceeded the supply three-fold.
Goldin said his company planned to invest up to US$1 billion in three years into network expansion in Moscow and in the provinces. The breakdown is US$300 million for the Russian capital and US$650 million to US$660 million for the rest of the country.
Goldin hopes Vimpelcom will receive the lacking licenses to become the de-jure nationwide carrier “in the coming 12 months.”
Late last year, the biggest Russian carrier Mobile TeleSystems (MTS), placed its first euro bonds worth US$250 million and made an additional US$50 million issue this year.
