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Sistema is the publicly-traded diversified holding company in Russia and the CIS.       
Established in 1993, today Sistema is a large private investor operating in the real sector of the Russian economy. Sistema's investment portfolio comprises stakes in predominantly Russian companies from various sectors of economy, including telecommunications, utilities, retail, high tech, pulp and paper, pharmaceuticals, healthcare, railway transportation, agriculture, finance, mass media, tourism, etc. Sistema is the controlling shareholder in most of its portfolio companies. Sistema's competencies focus on improvement of the operational efficiency of acquired assets through restructuring and attracting industry partners to enhance expertise and reduce financial risks.
Sistema's global depository receipts are listed under the symbol "SSA" on the London Stock Exchange (1 GDR is 20 ordinary shares) and the ordinary shares are listed under the symbol "AFKS" on the Moscow Exchange.

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31/03/2017 Sistema closes order book on RUB 15 bn series 001P-06 exchange-traded bonds

Moscow, 31 March 2017. – Sistema PJSFC (LSE: SSA, MOEX: AFKS) (“Sistema”) announces that on 30 March 2017 it successfully closed the book on its series 001P-06 exchange-traded bond issue with a nominal value of RUB 15 bn, as part of its Exchange-traded Bond Programme. The rates for coupons 1-10 were set at 8.90% p.a.

The bonds mature in 10 years, but bondholders are provided with put options exercisable five years after the date of placement. The coupon period is 182 days. The nominal value of the bonds is RUB 1,000.

The initial guidance for the first coupon was set at a range of 9.00%-9.15% p.a., implying a yield to put option at 9.20%-9.36%.  During book building, the initial range was first narrowed to 9.00%-9.10% (a yield of 9.20%-9.31%) and then lowered twice, with the final range being 8.90%-8.95% (a yield of 9.10%-9.15%).

Strong interest from investors in Sistema's bonds and good timing to come to market facilitated oversubscription of the issue and closing the book with a coupon rate of 8.90% p.a. (a yield to put option of 9.10% p.a.).

During book building, more than 30 applications were received from a wide range of investors, including banks, asset managers, investment companies and insurance companies. The aggregate demand for the bonds exceeded RUB 25 bn.

“We are satisfied with the results of the placement. The coupon rate is the lowest among the market placements by corporate issuers with an international rating below sovereign rating since the end of 2013. The increased demand for our debt securities once again confirmed the high assessment of Sistema's credit quality among fixed income investors. This placement of Sistema bonds is aimed at further optimising the Corporation's debt structure, reducing the cost of borrowing, and increasing the share of long-term liabilities,” said Vsevolod Rozanov, Sistema Senior Vice President and CFO.

UniCredit Bank, BCS GM, Promsvyazbank, Rosselkhozbank and Sberbank CIB are organisers of the bond issue. Co-organisers: MTS Bank and East West United Bank S.A.

Placement agent: UniCredit Bank.

Technical placement of the issue is planned for 7 April 2017 on Moscow Exchange.  

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For further information, please visit www.sistema.ru or contact:

Investor Relations
Yury Krebs
Phone: +7 (495) 730 66 00
y.krebs@sistema.ru
Press service
Sergey Kopytov
Phone: +7 (495) 228 15 32
kopytov@sistema.ru

 


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