Moscow, Russian Federation – Mobile TeleSystems OJSC (“MTS” – NYSE: MBT), the largest mobile phone operator in Russia and the CIS, today announced the terms for the placement of its first rouble bond. The 10 billion rouble bond will be due in 2018, with the notes carrying a coupon of 8.70%.

The bond issue was 1.7 times oversubscribed; foreign investors constituted one third of the total investor group.

The bond will be listed in the “V” quotation list on the Moscow Interbank Currency Exchange (MICEX).

The bond will have a two-year put option, with coupons being paid semiannually.  Funds raised through the placement will be used for general corporate purposes, including investments into further company growth and ongoing business development.

Vsevolod Rozanov, Vice President and CFO of MTS, commented, “The Board of Directors of MTS approved a strategy of increased presence on the company on Russian capital markets. This is the first rouble bond issued by MTS, and the results of the placement laud this strategy. The high level of investor interest and professionalism of bond arrangers allowed MTS’ bond to have one of the most effective coupon rates among non-governmental companies in Russia this year.”

The Lead Arrangers of the bond are Gazprombank, Raiffeisenbank and Troika Dialog.