Moscow, Russian Federation – Mobile TeleSystems PJSC (“MTS” or the “Company” – NYSE: MBT; MOEX: MTSS), the leading telecommunications provider in Russia, announces its successful return to the bond market after a three-year absence. On September 2, 2016, MTS issued a RUB 10 bln exchange-traded Series 2 bonds with a maturity of 15 years and a two-year put option on Moscow Interbank Currency Exchange (MICEX). Book building took place on August 25. The nominal price of the bonds is set at RUB 1,000 with the price of placement – 100% of nominal value.

The initial range for the first coupon was set at 9.60-9.75%. During the book building exercise, the rate fell twice to a range of 9.40-9.50%. Due to strong demand for the issue among investors, MTS was able to set the rate for the first coupon at 9.40%.

This placement was three times oversubscribed with more than 60 applications from investors.

This placement was a success for both MTS and for the bond market in general: among corporate placements with similar maturities, this placement boasts the lowest coupon since the beginning of 2014 and an unprecedented low spread of 60 basis points compared to federal loan bonds (OFZ). Overall, this is one of the lowest ruble-based coupon rates among corporate borrowers on the local market in recent years and demonstrates the high credit quality of the company among investors and strong balance sheet of MTS.

MTS intends to actively use the local bond market in the future for the purposes of optimization of its current debt profile, financing its investment program and for other corporate reasons. So far in 2016, MTS has retired, repaid or repurchased debt instruments in excess of RUB 39.9 bln.

Lead arrangers of bond are Gazprombank and Sberbank CIB. Sberbank CIB is the placement agent.

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For further information, please contact in Moscow:

Joshua B. Tulgan
Director, Department of Corporate Finance and Investor Relations
Mobile TeleSystems PJSC
Tel: +7 495 223 2025
E-mail: ir@mts.ru