MTS Issues RUB 10 bn in Bonds

June 20, 2022

MOSCOW, Russia – Mobile TeleSystems Public Joint Stock Company (“MTS” or “the Company”) (NYSE: MBT; MOEX: MTSS), Russia’s largest mobile operator and a leading provider of media and digital services, announces that it has completed the book building of its RUB 10 bn series 001P-21 exchange-traded bonds with a maturity of four years and a coupon rate of 9.65%.

The nominal price of the bonds is set at RUB 1,000, the coupon period at 91 days, and the price of placement at 100% of the nominal value.

The book building, which took place on June 17, saw robust demand, with about 60 orders from a wide range of investors, including banks; investment, asset management and insurance companies; non-state pension funds; and retail investors. As a result, the bid book was six times oversubscribed, and the coupon was reduced three times, from an initial rate of 10.20% to a final fixed rate of 9.65%.

Alexander Smirnov, MTS’s Corporate Finance and Treasury Director, said: “The current placement demonstrates the high degree of confidence of a wide group of Russian investors in MTS ruble bonds. This assessment of the company’s creditworthiness enabled us to return to single-digit coupon rates and a risk premium level above the base curve of less than 1%.”

Bank GPB (JSC) and BC Region served as bond arrangers, PJSC MTS-Bank and JSC IFC Solid as co-organizers, and Bank GPB (JSC) as the placement agent.

The technical placement of the bonds is planned for June 27, 2022, on Moscow Exchange (MOEX). MTS intends to use the funds for general corporate purposes and optimization of its debt portfolio.