Sistema closes order book on RUB 10 bln bonds

Sistema closes order book on RUB 10 bln exchange-traded bonds

Moscow, Russia - 29 January 2018 - Sistema PJSFC ("Sistema" or the "Corporation") (LSE: SSA, MOEX: AFKS), a publicly traded diversified Russian holding company, announces that on 26 January 2018 it successfully closed the book on its series 001P-07 exchange-traded bond issue with a nominal value of RUB 10 billion, as part of its Exchange-traded Bond Programme. The rates for coupons 1-2 were set at 9.80% p.a.

The bonds mature in 10 years. Bondholders are provided with a put option exercisable one year after the date of placement. The coupon period is 182 days. The initial guidance for the first coupon was set at a range of 9.80%-10.00% p.a., implying a yield to put option at 10.04%-10.25% p.a. Based on the results of the book-building, the coupon was set at 9.80% p.a., the bottom end of the initial guidance. More than 30 applications were received at the coupon rate from the principal categories of investors, including banks, investment companies and asset managers.

Senior Vice President and Chief Financial Officer of Sistema Vsevolod Rozanov said: "This transaction underscores the high level of trust that debt capital market participants have in Sistema as a high-quality borrower. The successful placement of exchange-traded bonds will allow the Corporation to continue optimising the structure of its liabilities and also to reduce the cost of debt."

Gazprombank, VTB Capital, Sberbank CIB and BCS Global Markets are organisers of the bond issue. Co-organisers: MTS Bank and East West United Bank S.A.

Placement agent: Gazprombank.

Technical placement of the issue is planned for 2 February 2018 on Moscow Exchange.

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For more information please visit our website www.sistema.ru or contact:

Sistema PJSFC is a publicly traded diversified Russian holding company serving over 150 million customers in such sectors as telecommunications, retail, paper and packaging, agriculture, high technology, banking, real estate, pharmaceuticals, tourism and healthcare services. The company was founded in 1993. Sistema's revenues for 9M 2017 reached RUB 509.6 billion and its total assets amounted to RUB 1.2 trillion as of 30 September 2017. Sistema's global depositary receipts are listed under the "SSA" ticker on the London Stock Exchange. Sistema's ordinary shares are listed under the "AFKS" ticker on the Moscow Exchange. Website: www.sistema.com