Sistema closes order book on RUB 15 bn bonds

Sistema closes order book on RUB 15 bn exchange-traded bonds

Moscow, Russia - 5 March 2018 - Sistema PJSFC ("Sistema" or the "Corporation") (LSE: SSA, MOEX: AFKS), a publicly traded diversified Russian holding company, announces that on 2 March 2018 it successfully closed the order book on its series 001P-08 exchange-traded bond issue with a nominal value of RUB 15 billion, as part of its Exchange-traded Bond Programme. The rates for coupons 1-3 were set at 9.25% p.a.

The bonds mature in 10 years. Bondholders are provided with a put option exercisable 1.5 years after the date of placement. The coupon period is 182 days. The initial guidance for the first coupon was set at a range of 9.25%-9.50% p.a., implying a yield to put option at 9.46%-9.73% p.a. Based on the results of the book-building, the coupon was set at 9.25% p.a., the bottom end of the initial guidance.

Senior Vice President and Chief Financial Officer of Sistema Vsevolod Rozanov said: "The successful placement of this new bond issue will continue to reduce the Corporation's cost of borrowing on the debt markets, as well as lengthen debt repayment terms. Over the course of next six months Sistema will be retiring a number of FX and RUB-denominated liabilities, including redeeming exchange-traded bonds with a higher coupon rate. The transaction we are announcing today will allow us to optimise the structure of our liabilities and will increase Sistema's financial flexibility."

Gazprombank, Sberbank CIB and BINBANK 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 7 March 2018 on Moscow Exchange.

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

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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