Rostelecom announces RUB 10 bln bond placement

Coupon set at 11.70% per annum

Moscow, Russia – May 27, 2015 – Rostelecom OJSC (MOEX - RTS: RTKM, RTKMP; OTCQX: ROSYY), Russia’s national telecommunications operator, today announces that the coupon of its BO-1 and BO-2 series bonds has been set at 11.70% per annum. The bonds, totalling a nominal value of RUB 10 billion, have a two-year put option from placement and a maturity of 10 years with a nominal value of RUB 1,000 each.

The issue was oversubscribed with total demand reaching almost RUB 18 billion. 38 book orders were accepted, however the current market situation, the profitability of the placement, the coupon rate, and the level of investor demand for the bonds meant that not all orders were accepted.

Rostelecom’s BO-1 series bonds will be placed on the MICEX and settled on May 29, 2015 while the BO-2 series bonds will be settled on June 2, 2015.

VTB Capital CJSC, Gazprombank OJSC and CJSC “Sberbank CIB” acted as organisers of the deal.

Kai-Uwe Mehlhorn, Senior Vice-President and Chief Financial Officer, commented: "A more stable financial markets backdrop has led to a favourable environment for a bond issuance, creating opportunities to attract cheaper finance through public debt instruments. The issue will extend the Company’s debt maturity.”

Rostelecom’s bond programme, which totals RUB 100 billion, was approved in 2012 and the Company has since issued RUB 40 billion worth of bonds.