Rostelecom places its debut exchange-traded social bonds for RUB 10 billion at 8.85% p. a.

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PJSC Rostelecom (MOEX: RTKM, RTKMP), Russia’s largest provider of digital services and solutions, is launching its debut social bonds to refinance the Company’s comprehensive social projects under the Information Infrastructure federal project – Building Internet Infrastructure for Social Infrastructure Facilities and Bridging the Digital Divide.

Through these projects, the Company has:

  • brought internet connection to social infrastructure facilities (including educational and healthcare organisations)
  • provided more people with ready access to information, knowledge bases and centres of excellence in healthcare
  • increased the number of Wi-Fi access points in communities with a population between 100 and 500 people
  • grown the number of consumers benefitting from Wi-Fi and modern mobile technology in communities with a population between 100 and 500 people.

These projects have delivered a positive social impact, in particular improving quality of life in sparsely populated areas by unlocking a wider availability of communications services and also by laying the ground for bringing high-speed internet to schools, hospitals and other public places, which has also secured tangible efficiency gains at these public institutions.

Earlier, the ACRA rating agency confirmed that Rostelecom’s social bonds are aligned with internationally recognised social finance principles and standards (ICMA’s Social Bond Principles), as well as that the public development projects to be refinanced through the issue are compliant with internationally recognised social finance principles and standards (as per the Bank of Russia’s Regulation No. 706-P On Securities Issue Standards dated 19 December 2019).

The Company set a coupon of 8.85% p. a. on its RUB 10 billion 001P-06R series exchange-traded social bonds. The bonds mature in 2.75 years and have a nominal value of RUB 1,000 each.

Rostelecom’s 001P-06R series bonds are expected to be settled on the Moscow Exchange (MOEX) on 9 December 2022. Bond proceeds will be used to refinance Rostelecom’s current debt without increasing leverage.

The deal was arranged by Gazprombank, CREDIT BANK OF MOSCOW, Rosselkhozbank, and REGION Broker Company.