Russian phone giant goes for Eurobonds

MOSCOW, Jan. 17 (UPI) -- Russia's largest cellular provider plans to issue up to $300 million in Eurobonds this month, Interfax news agency reported Monday.

Mobile TeleSystems investor relations director Andrei Braginsky confirmed the placement plan but said the amount would only be announced after investors are notified, Interfax said.

The report quoted sources at the two lead banks handling the issue - Credit Suisse Bank Boston and Goldman Sachs - that the placement might come as early as this week and will be worth $300 million.

The bonds would be issued through MTS' wholly owned subsidiary Mobile TeleSystems Finance S.A. (Luxembourg) and guaranteed by MTS, Interfax said. The issue has already been assigned a rating of Ba3/BB- it said.

Braginsky said MTS's overall debts stood at $1.4 billion at the end of the third quarter of 2004. MTS plans to invest $1.8 billion in 2005, he said.