Public joint-stock company Ukrtelecom on Sept. 13 started placing M Series bonds worth UAH 250 million on the Kyiv-based Ukrainian Exchange, the public relations department of the exchange has told Interfax-Ukraine.
The bonds will be placed in the trading system on working days from 1100 to 1500. Kyiv-based Troika Dialog Ukraine is the underwriter of the issue. The interest rate for the first-second coupons is set at 14.5%. Interest is to be paid every quarter.
The bonds will be on the market until Sept. 7, 2014. The conditions of the issue foresee an annual buyback offer.
The funds raised will be spent on increasing the number of broadband Internet access hubs and digital multi-media resources on the basis of ADSL technology. In addition, Ukrtelecom intends to upgrade streaming video and video-on-demand processing and broadcasting systems, online service ordering and self-service systems, and its own call center, while designing its own products and services to satisfy demand for packaged telecommunications services.
Currently seven issues of the company’s bonds are on the market. The have a total nominal value of Hr 725 million.
The total liabilities of the national communications operator as of late 2010 came to Hr 3.74 billion, 20% less than as of late 2009. Its debt to banks fell by 28.8% in a year, to Hr 2.1 billion and its debt on bonds grew by 62.6%, to Hr 714.3 million.
In 2010, Ukrtelecom reduced its net loss by 43.9%, to Hr 258.77 million, and its net income was down by 1.7%, to Hr 6.749 billion.
