Rostelekom Adr Regulatory News (RKMD)

Rostelecom announces RUB 15 bln Bond placementCoupon rate set at 6.65% per annum

Moscow, Russia - February 5, 2020 - Rostelecom PJSC (MOEX - RTS: RTKM, RTKMP; OTCQX: ROSYY), Russia's national telecommunications operator, today announces the placement of its 002P-01R[1] series bonds at a coupon rate of 6.65% per annum. The bonds have a total nominal value of RUB 15 billion, maturity of 7 years and a nominal value of RUB 1,000 each. The 002P-01R series Rostelecom bonds are expected to be placed on the Moscow Exchange (MOEX) on February 19, 2020.

Proceeds generated from the bond placement will be used for a range of general corporate purposes, including financing the cash portion of the transaction that sees Rostelecom consolidate 100% stake in Tele2 Russia. Credit Bank of Moscow acted as the offering's arranger.

Sergei Anokhin, Senior VP and CFO of Rostelecom, commented: "The Bond markets continue to provide us with long-term financing at attractive rates. Low inflation and easing monetary policy are contributing to a favorable market environment that enables us to reduce our cost of debt and extend maturity, which helps us to maintain a comfortable capital structure."

Further information is available at https://www.company.rt.ru/en/ir/news_calendar/.

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Rostelecom is the largest digital service provider, operating in all segments of the telecommunications market in Russia, it serves millions of households, the state and private enterprises across the country.

Rostelecom is Russia's undisputed market leader, providing high-speed Internet access to over 13.1 million users and pay-TV services to more than 10.3 million clients, over 5.5 million of which are subscribed to Rostelecom's IPTV services on a national level.

In the nine months of 2019, the Group generated RUB 242.6 billion of revenues, RUB 81.4 billion of OIBDA (33.6% of revenue) and RUB 16.4 billion of net income.

The Group is the leading provider of telecommunications services to government bodies and corporates of all levels.

Rostelecom is a key strategic innovator that provides solutions in the following fields: E-Government, cybersecurity, data-centers and cloud computing, biometry, healthcare, education and housing & utility services.

The Group's stable financial position is confirmed by its credit ratings. Rostelecom has been assigned 'BBB-' and 'BB+' international credit ratings by Fitch Ratings and Standard&Poor's respectively, and AA(RU) by ACRA.

[1] The programme of listed bonds, identification number 4-00124-A-002P-02E from 15.12.2015, totaling RUB 200 billion.