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UPDATE 1-Vimpelcom sells 10 bln rbl bond, coupon 9.05 pct

Fri Jul 25, 2008 10:18am EDT

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MOSCOW, July 25 (Reuters) - Vimpelcom (VIP.N), Russia's second-largest mobile phone operator, placed in full a five-year bond worth 10 billion roubles ($427.9 million) on Friday, market data showed RU0A0JPX45=MM.

Pavel Sokolov, a managing director of Troika Dialog, one of the issue organisers, told Reuters the issue was oversubscribed as bids for the bond exceeded 16 billion roubles.

The annual coupon rate for the first 1-1/2 years, with a put option, was set at 9.05 percent, the company said. Troika Dialog and Raiffeisenbank, which is also managing the sale, had seen the coupon in an 8.75-9.25 percent range.

Vimpelcom has registered two rouble bond issues worth 10 billion roubles and 5 billion roubles with a market regulator and can sell the bonds no later than Aug. 23, 2008.

Banking sources earlier said both tranches, rated 'BB+' by S&P, would be placed in July and proceeds from the sale would be used to fund investment programme and refinance debt.

In June, Vimpelcom's main rival, Russia's No.1 carrier MTS (Mobile TeleSystems) (MBT.N), issued a 10-year bond worth 10 billion roubles with an 8.7 percent annual coupon rate for the first two years, with a put option.

Vimpelcom is controlled by Norwegian telecom group Telenor (TEL.OL) and Russian billionaire Mikhail Fridman's Alfa Group.

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