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

(Adds auction results, details, background)

MOSCOW, July 25 (Reuters) - Vimpelcom (VIP.N: Quote, Profile, Research, Stock Buzz), 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: Quote, Profile, Research, Stock Buzz), 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: Quote, Profile, Research, Stock Buzz) and Russian billionaire Mikhail Fridman's Alfa Group.