AFK Sistema : Sistema closes order book on RUB 15 bn series 001P-06 exchange-traded bonds

31/03/2017

Sistema closes order book on RUB 15 bn series 001P-06 exchange-traded bonds

Moscow, 31 March 2017. - Sistema PJSFC (LSE: SSA, MOEX: AFKS) ('Sistema') announces that on 30 March 2017 it successfully closed the book on its series 001P-06 exchange-traded bond issue with a nominal value of RUB 15 bn, as part of its Exchange-traded Bond Programme. The rates for coupons 1-10 were set at 8.90% p.a.

The bonds mature in 10 years, but bondholders are provided with put options exercisable five years after the date of placement. The coupon period is 182 days. The nominal value of the bonds is RUB 1,000.

The initial guidance for the first coupon was set at a range of 9.00%-9.15% p.a., implying a yield to put option at 9.20%-9.36%. During book building, the initial range was first narrowed to 9.00%-9.10% (a yield of 9.20%-9.31%) and then lowered twice, with the final range being 8.90%-8.95% (a yield of 9.10%-9.15%).

Strong interest from investors in Sistema's bonds and good timing to come to market facilitated oversubscription of the issue and closing the book with a coupon rate of 8.90% p.a. (a yield to put option of 9.10% p.a.).

During book building, more than 30 applications were received from a wide range of investors, including banks, asset managers, investment companies and insurance companies. The aggregate demand for the bonds exceeded RUB 25 bn.

'We are satisfied with the results of the placement. The coupon rate is the lowest among the market placements by corporate issuers with an international rating below sovereign rating since the end of 2013. The increased demand for our debt securities once again confirmed the high assessment of Sistema's credit quality among fixed income investors. This placement of Sistema bonds is aimed at further optimising the Corporation's debt structure, reducing the cost of borrowing, and increasing the share of long-term liabilities,' said Vsevolod Rozanov, Sistema Senior Vice President and CFO.

UniCredit Bank, BCS GM, Promsvyazbank, Rosselkhozbank and Sberbank CIB are organisers of the bond issue. Co-organisers: MTS Bank and East West United Bank S.A.

Placement agent: UniCredit Bank.

Technical placement of the issue is planned for 7 April 2017 on Moscow 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 'SSA' ticker on the London Stock Exchange. Sistema's ordinary shares are listed under the 'AFKS' ticker on the Moscow Exchange. Website: www.sistema.ru.