UTK made advanced repayment of 55.5 million Euro loan raised from ORGRESBANK
Krasnodar, 23 October 2009: Southern Telecommunications Company ("UTK") [(RTS: KUBN, KUBNP; ÌICEX: UTEL, UTELP; ADR OTC: STJSY, KUE FRA)], the principal fixed-line telecommunications provider for Russia's Southern Federal District, hereby reports that it repaid ahead of schedule a 55.5 million Euro loan raised from ORGRESBANK (Open Joint-Stock Company).
The credit agreement was signed on 17th November 2008 for 55.5 million Euro repayable in two years. The interest rate on the loan was three-month EURIBOR + 4%.
Vyacheslav Kozelsky, Deputy Director General –Director for Economics and Finance of Southern Telecommunications Company said that the loan was repaid within the framework of the Company’s new financial strategy aimed at mitigation of currency risks and increase in duration of the Company’s credit portfolio.
