20 May 2004 17:53
Russia - MegaFon plans eurobond issue by end-2004
MegaFon (Russia), mobile operator backed by TeliaSonera, plans to issue a eurobond by end-2004, said company CEO
Sergei Soldatenkov in a Vedomosti newspaper report. The bond will be used to pay for some of the company's USDlr650
mil capital expenditure in 2004. MegaFon will proceed with the move despite a souring of investor appetite for emerging
market risks related to an expected US interest rate hike. Vimpelcom has postponed a USDlr300 mil bond and MTS (both
Russia), both mobile operators, said it would delay a similar move. Soldatenkov said that MefaFon will eventually return
to an IPO projected postponed due to a difference of opinion among shareholders. IPOC International Growth Fund
(Bermuda), 6.5% MegaFon owner, is in a dispute with Alfa Group (Russia) over 25.1% of MegaFon.
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