19th Feb 2015 13:02
SISTEMA PLACES RUB 10 BILLION BOND
Moscow, Russia – February 19, 2015 – Sistema JSFC (“Sistema” or the “Company”) (LSE: SSA) today announces that it has completed the placement of RUB 10 billion Series BO-01 unconvertible interest-bearing bonds with a par value of RUB 1,000.
The bid book was opened on February 17, 2015, with the coupon rate set in the range of 17.0% - 17.5% per annum. Despite challenging market conditions, there was strong demand for the bonds and Sistema closed the bid book at the rate of 17% per annum.
Coupon payments will be made on a semi-annual basis. The bonds mature in 15 years’ time. In addition, bondholders have the right to redeem their bonds at the point of expiration, 18 months from the date the bonds were placed.
Vsevolod Rozanov, Senior Vice-President and Chief Financial Officer of Sistema, commented: “The placement of our bond issue is the first market transaction on the domestic market among corporate borrowers in the BB credit rating category since the beginning of 2014, and the first one in the corporate segment in 2015. This successful placement demonstrates the attractiveness of Sistema’s securities and investors’ continued interest in our investment strategy. We believe that the bond placement provides more attractive terms as compared to bank loans and we plan to use the proceeds to support our investment and corporate activities.”
Gazprombank and Raiffeisen Bank acted as the Co-Lead Managers of the issue. MTS Bank and Rosselkhozbank were Co-Managers, while Gazprombank acted as the Underwriter of the issue. The bonds were placed on the MICEX Stock Exchange.
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For further information, please visit www.sistema.com or contact:
| Investor Relations Evgeniy Chuikov Tel: +7 (495) 692 11 00 | Public Relations Sergey Kopytov Tel.: +7 (495) 228 15 27 |
Sistema is the publicly-traded diversified holding company in Russia and the CIS, which invests in and is a major shareholder of companies serving over 100 million customers in the sectors of telecommunications, high technology, energy, radars and aerospace, banking, retail, mass-media, tourism and healthcare services. Founded in 1993, the Company reported revenues of US$ 8.9 billion for the third quarter of 2014, and total assets of US$ 40.0 billion as at September 30, 2014. Sistema’s global depository receipts are listed under the symbol “SSA” on the London Stock Exchange. Sistema’s ordinary shares are listed under the symbol “AFKS” on the Moscow Exchange. Sistema was ranked number 308 in the 2013 edition of the Fortune Global 500 list. Website: www.sistema.com
The Company is not an investment company, and is not and will not be registered as such, under the U.S. Investment Company Act of 1940.
Some of the information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of Sistema. You can identify forward looking statements by terms such as “expect,” “believe,” “anticipate,” “estimate,” “intend,” “will,” “could,” “may” or “might” the negative of such terms or other similar expressions. We wish to caution you that these statements are only predictions and that actual events or results may differ materially. In addition, there is no assurance that the new contracts entered into by our subsidiaries referenced above will be completed on the terms contained therein or at all. We do not intend to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Many factors could cause the actual results to differ materially from those contained in our projections or forward-looking statements, including, among others, general economic conditions, our competitive environment, risks associated with operating in Russia, rapid technological and market change in our industries, as well as many other risks specifically related to Sistema and its operations.
Copyright Business Wire 2015
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