MegaFon : opens subscription for ruble bonds

Ruble bonds up to a total principal amount of 15 billion rubles are being offered. The Ruble bonds will have a term of 5 years following placement. The coupon is expected to be in the range between 07.85% and 08.00% per annum, subject to final determination via the book building exercise. Proceeds from the Ruble bonds will be used for general corporate purposes, including the refinancing of the Company's existing liabilities.

The books are expected to close at 16:30 Moscow time today. Placement on the Moscow Exchange is expected to occur on or about 09 October 2017.

BCS Global Markets, Gazprombank, Russian Agricultural Bank and UniCredit Bank are acting as the lead arrangers of the Ruble bonds issue. Gazprombank is acting as the placement agent.

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NOTES TO EDITORS

MegaFon PJSC is a leading Russian integrated telecommunication service provider, operating in all segments of the telecommunications markets in Russia, and in the Republics of Abkhazia, South Ossetia and Tajikistan. MegaFon is a recognized market leader in the provision of mobile data services, was the first operator in Russia to launch commercial operation of a third generation (3G) network and was the first operator in the world to launch commercial operation of an LTE-Advanced (4G) data network. MegaFon is traded on the Moscow Exchange and the London Stock Exchange under the symbol MFON. Additional information about MegaFon and the products and services provided by MegaFon can be found at: http://www.megafon.ru

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