Rostelecom announces RUB 10 bln bond placement. Coupon rate set at 8.65% per annum.

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Moscow, Russia – April 19, 2017 - Rostelecom PJSC (MOEX: RTKM, RTKMP; OTCQX: ROSYY), Russia’s national telecommunications operator, today announces the placement of its 001P-02R 1 series bonds at a coupon rate of 8.65% per annum. The bonds, with a total nominal value of RUB 10 billion, have a five-year put option from placement and a maturity of 10 years with a nominal value of RUB 1,000 each.

The initial coupon rate range was set within 8.80 8.95% per annum, which corresponds to a bond offer yield of 8.99-9.15%. Investors considerable interest in the offering reflected in a total of 49 book orders accepted by Rostelecom from all investor groups, including banks, investment companies, management companies, insurance companies and private investors. As a result the issue was oversubscribed by 4.7 times.

The 001P-02R series Rostelecom bonds will be placed at the Moscow Exchange (MOEX) on April 26, 2017. The lead arrangers of the offering are VTB Capital, Sberbank CIB, Gazprombank and Rosbank.

Kai-Uwe Mehlhorn, Senior Vice-President and Chief Financial Officer, commented:
"We closely monitor market developments and we are in a position to secure attractive financial instruments to optimise our debt portfolio in terms of its structure and costs of servicing. Our decision to conduct a bond placement is based on the attractive financing opportunities currently available in the public debt market and the level of interest that Rostelecom is attracting. As a result we have achieved the most successful placement in the Russian corporate bond market in the last three years. The funds from the bonds placement are expected to be largely used for refinancing purposes.”

1The programme of listed bonds, identification number 4-00124-A-001P-02E from 15.12.2015, totaling RUB 100 billion.