UPDATE 1-Vimpelcom to sell 10 bln rbl bond in July-source

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MOSCOW, July 3 (Reuters) - Russia's second-largest mobile phone operator Vimpelcom (VIP.N: Quote, Profile, Research) will issue a 10 billion rouble ($427.9 million) five-year bond in the second part of July, a banking source told Reuters on Thursday.

The source said the coupon for the first one and a half years, with a put option, was seen in the range of 8.75-9.25 percent.

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 issues would be placed in July and proceeds from the sale, managed by Troika Dialog and Raiffeisenbank, would be used to fund possible acquisitions and refinance debt.

Vimpelcom is controlled by Norwegian telecom group Telenor (TEL.OL: Quote, Profile, Research) and Russian billionaire Mikhail Fridman's Alfa Group. (Reporting by Yelena Fabrichnaya; Writing by Maria Kiselyova)