Tinkoff Bank completes RUB 3 bn bond offering

Tinkoff Bank successfully completes RUB 3 bn bond offering with a coupon of 11.7%

Moscow, Russia - 23 June 2016. TCS Group Holding PLC (TCS LI) (the 'Group'), Russia's leading provider of online retail financial services, including Tinkoff Bank and Tinkoff Insurance, today announces that Tinkoff Bank has successfully completed the placement of its BO-07 series exchange bonds for a total amount of RUB 3 bn priced at 11.7% per annum.

On 23 June 2016, Tinkoff Bank successfully closed the order book for its BO-07 series exchange bonds. The RUB 3 bn offering has a maturity of 5 years and a 1.5 year put option.

Tinkoff Bank plans to use the proceeds of the offering to finance its business development.

The subscription kicked off on 23 June 2016 with the initial price guidance of 12.00-12.50%. The bond offering was 2.5 times oversubscribed, demonstrating strong investor demand that enabled the Bank to lower the price guidance twice.

As a result, the order book amounted to RUB 7.6 bn and the coupon rate for the first 1.5 years was set at 11.7%.

Sergey Pirogov, Vice President of Corporate Finance at Tinkoff Bank, commented: "We are delighted to come back to the Russian bond market after a three-year break. The strong investor demand for the offering allowed us to build a robust order book and achieve an attractive pricing. The success of this offering shows that the Russian bond market is open to attractive investment stories like ours."

The offering was led by Sberbank CIB and Sovcombank.

The bond will be admitted to trading on the Moscow Exchange on 30 June 2016.

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About the Group

TCS Group Holding PLC is an innovative provider of online retail financial services operating in Russia through a high-tech branchless platform. The Group has also developed a "smart courier" network covering almost 600 cities and towns in Russia which allows next day delivery to many customers.

Tinkoff Bank's product range includes credit, debit and prepaid cards, deposits, co-branded cards, and agent-based mortgage products. With its special focus on mobile business, the bank offers mobile applications both for its customer base (Mobile Bank) and beyond it (Traffic Fines, MoneyTalk, Card 2 Card instant money transfers).

As per its five-year strategy, the Group has the ambition to become a financial marketplace, offering both own brand and partner products.

As at 1 May 2016, the bank was the second largest player in the Russian credit card market, with a 9% market share. As at 1 April 2016, the bank issued over 5.8 m credit cards. The bank is well capitalised: its CBR N1 total capital ratio stood at 12.3% as at 1 May 2016.

The Group's 1Q 2016 IFRS net income amounted to RUB 1.9 bn.

In 2015, the Global Finance magazine named Tinkoff Bank as the Best Internet Retail Bank in Russia. In 2013, Tinkoff Bank was recognised as the Bank of the Year and the most profitable bank in Russia by the Banker magazine, the world's premier banking and finance resource, published by the Financial Times Group.

Forward-looking statements

Some of the information in this announcement may contain projections or other forward-looking statements regarding future events or the future financial performance of the Group and Tinkoff Bank. 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. The Group and Tinkoff Bank wish to caution you that these statements are only predictions and that actual events or results may differ materially. The Group and Tinkoff Bank 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 projections or forward-looking statements of the Group and Tinkoff Bank, including, among others, general economic conditions, the competitive environment, risks associated with operating in Russia, rapid technological and market change in the industries the Group operates in, as well as many other risks specifically related to the Group, Tinkoff Bank and their respective operations.