MTS issues RUB 15 bn in Bonds

December 15, 2022

MOSCOW, Russia – Mobile TeleSystems Public Joint Stock Company (“MTS” or “the Company”) (MOEX: MTSS), a leading provider of digital and media services and Russia’s largest mobile operator, announces that it has completed the book building of its RUB 15 bn in exchange-traded series 001P-23 bonds with a maturity of two years and a coupon rate of 8.40%. The technical placement of the bonds is planned for December 21, 2022, on Moscow Exchange (MOEX).

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 held on December 14, 2022 saw robust demand and, as a result, the coupon was reduced three times from an initial rate of 8.65% to a final fixed rate of 8.40%.

Alexander Smirnov, Corporate Finance & Treasury Director, commented: “After a short pause at the beginning of 2022, over the past seven months, MTS Group has placed six new issues of ruble bonds with a total volume of RUB 72 bn, which confirms the stably high interest of Russian investors in our bonds. The high assessment of the company's credit quality by investors allows us to maintain optimal risk premium levels above the base curve”.

The bonds are planned to be included in MOEX’s Level I Quotation List, with a credit rating expected from the Expert RA and NCR (National Credit Ratings) agencies. BCS Global Markets, Veles Capital, Credit Bank of Moscow, Russian Agricultural Bank, Sinara Investment Bank, JSC IFC Solid, and MTS Bank served as arrangers and Bank GPB (JSC) as the placement agent.

MTS intends to use the funds for general corporate purposes and optimization of its debt portfolio.