Rostelecom announces RUB 15 bln bond placement

Coupon rate set at 9.2% per annum

Moscow, Russia – September 16, 2016 - Rostelecom PJSC (MOEX: RTKM, RTKMP; OTCQX: ROSYY), Russia’s national telecommunications operator, today announces the placement of its 001P-01R¹ series bonds at a coupon rate of 9.2% per annum. The bonds, with a total nominal value of RUB 15 billion, have a three-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 overall demand reaching more than RUB 46 billion. The level of investor demand for the bonds determined the company's decision to increase placement volume from RUB 10 billion, as originally announced, to RUB 15 billion. A total of 36 book orders from investors were accepted by Rostelecom.

The 001P-01R series Rostelecom bonds will be placed on the Moscow Exchange (MOEX) on September 22, 2016. The lead arrangers of the placement are VTB Capital and Sberbank CIB.

Kai-Uwe Mehlhorn, Senior Vice-President and Chief Financial Officer, commented:

«Our decision to make a bond placement is based on the attractive financing opportunities currently provided by public debt instruments. This issuance forms part of a new bond programme, which was approved by the Board of Directors last year. The placement is not expected to increase the level of the Company’s total debt as the proceeds will be largely used for refinancing purposes, whilst simultaneously reducing interest costs and continuing our cost optimisation policy».