AFK Sistema : Sistema closes order book on RUB 10 bln exchange-traded bond issue

18/11/2016

Sistema closes order book on RUB 10 bln exchange-traded bond issue

Moscow, 18 November 2016 - Sistema PJSFC (LSE: SSA, MOEX: AFKS) ('Sistema' or the 'Company') announces that on 17 November 2016 it successfully closed the order book on its Series 001Р-05 exchange-traded bonds with a nominal value of RUB 10 billon as part of its Exchange-traded Bond Programme. The rate for coupons 1-13 was set at 9.90% per annum.

The term of the bonds is 10 years, and the issue calls for a tender offer (providing holders the right to present the exchange-traded bonds for repurchase) 3.25 years from the date of issuance. The length of the coupon period is 91 days. The nominal value of each bond is RUB 1,000.

Initial guidance on the coupon rate was a range of 9.80-9.99% per annum, implying a yield at the time of the tender offer of 10.17-10.37%.

Over the course of book-building the initial price range was lowered to 9.80-9.90% (yield of 10.17-10.27%).

Investors showed strong interest in Sistema bonds, resulting in oversubscription of the order book with 25 orders from all categories of investors (banks, asset management firms, investment companies and insurance companies). The decision was taken to set the 1-13 coupon rates at 9.90% per annum (tender offer yield of 10.27%).

Sistema Senior Vice President and Finance Director Vsevolod Rozanov said: 'This offering is already Sistema's second debt issue this month. Strong demand for Sistema bonds confirms the investment community's positive assessment of the Company's strategy and the quality of our assets. In the fourth quarter of 2016 Sistema will be retiring a number of debt securities, including redeeming our Series 03 exchange-traded bonds. With this bond issue Sistema will further optimise the structure of its debt portfolio. The transaction will also allow the Company to maintain its investment resources at the necessary level.'

Organisers of the debt issue are Gazprombank, Rosselkhozbank and Sberbank CIB; co-organisers are MTS Bank and East West United Bank SA.

The placement agent is Gazprombank.

The placement will take place 25 November 2016 on MICEX Stock Exchange.

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For further information, please visit www.sistema.ru or contact:

Sistema PJSFC is a publicly-traded diversified Russian holding company serving over 150 million customers in the sectors of telecommunications, high technology, banking, retail, timber processing, agriculture, real estate, pharmaceuticals, tourism and healthcare services. The company was founded in 1993. Its revenue in 2015 reached RUB 708.6bn; its total assets equalled RUB 1.3tn as of 31 December 2015. Sistema's global depositary receipts are listed under the symbol 'SSA' on the London Stock Exchange. Sistema's ordinary shares are listed under the 'AFKS' ticker on the Moscow Stock Exchange. Website: www.sistema.ru.