Moscow, Russia – 29 January 2018– Sistema PJSFC (“Sistema” or the “Corporation”) (LSE: SSA, MOEX: AFKS), a publicly traded diversified Russian holding company, announces that on 26 January 2018 it successfully closed the book on its series 001P-07 exchange-traded bond issue with a nominal value of RUB 10 billion, as part of its Exchange-traded Bond Programme. The rates for coupons 1-2 were set at 9.80% p.a.

The bonds mature in 10 years. Bondholders are provided with a put option exercisable one year after the date of placement. The coupon period is 182 days. The initial guidance for the first coupon was set at a range of 9.80%-10.00% p.a., implying a yield to put option at 10.04%-10.25% p.a. Based on the results of the book-building, the coupon was set at 9.80% p.a., the bottom end of the initial guidance. More than 30 applications were received at the coupon rate from the principal categories of investors, including banks, investment companies and asset managers.

Senior Vice President and Chief Financial Officer of Sistema Vsevolod Rozanov said: "This transaction underscores the high level of trust that debt capital market participants have in Sistema as a high-quality borrower. The successful placement of exchange-traded bonds will allow the Corporation to continue optimising the structure of its liabilities and also to reduce the cost of debt."

Gazprombank, VTB Capital, Sberbank CIB and BCS Global Markets 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 2 February 2018 on Moscow Exchange.

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