9 Jan 2017 09:30
FOR IMMEDIATE RELEASE 9 January 2017
Sistema and VTB Bank agree long-term financing for RTI Group
Moscow, 9 January 2017. Sistema PJSFC (LSE: SSA, MOEX: AFKS) ("Sistema"), a public diversified holding company, and VTB Bank ("VTB") have agreed on long-term financing to be provided to RTI Group ("RTI").
Under the agreements, the entire debt of RTI Group, with the exception of liabilities pertaining to state defence orders (which are covered by government guarantees), are to be refinanced in 2016-2017 by VTB, which will become the group's major lender, providing up to RUB 28.5bn in financing.
The loan agreements provide for the deferment of a significant portion (about 60%) of RTI Group's debt until 2021, to be followed by annual settlement payments through the end of 2026, as well as a grace period for interest payments. The rest of the debt will be refinanced through five-year revolving credit lines, which will give RTI Group additional flexibility in managing its working capital.
Sistema will buy from VTB (as the legal successor of OJSC Bank of Moscow) 15.32% of OJSC RTI's share capital for a consideration of RUB 4.5bn, with final settlement in January 2019. The acquisition will make Sistema the owner of 87% of the equity in OJSC RTI. The Russian Federal Antimonopoly Service (FAS) approved the transaction in November 2016.
Sistema's President Mikhail Shamolin said: "The agreements reached with VTB Bank, our long-standing partner, are of strategic importance to RTI Group. Optimisation of the debt portfolio will significantly improve RTI's financial stability and will help to strengthen its position in key business segments."
Sergey Boyev, Chairman of RTI's Board of Directors, said: "RTI's ability to attract long-term financing from a lender of VTB's calibre testifies to the successful execution of our strategy in the high-tech market. Working with VTB will strengthen our financial capabilities, help us implement our plans to increase our project portfolio and grow market share, and will also support the future growth of RTI."
Yuri Soloviev, First Deputy President and Chairman of VTB Bank Management Board, said: "VTB is interested in the further development of its long-term partnership with RTI, and we are ready to provide a full range of financial products and services, as well as our global expertise to support the efficient development of RTI's business."
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For further information, please visit Sistema's official website or contact:
IR Service Yury Krebs Phone: +7 (495) 730 66 00 y.krebs@sistema.ru
| Press service Sergey Kopytov Phone: +7 (495) 228 15 32 kopytov@sistema.ru
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Sistema PJSFC is a publicly traded diversified Russian holding company serving over 150 million customers in such sectors as telecommunications, high technology, banking, retail, timber processing, agriculture, real estate, pharmaceuticals, tourism and healthcare services. The company was founded in 1993. Its revenue in 2015 reached RUB 708.6bn; its total assets equalled RUB 1.3tn as of 31 December 2015. Sistema's global depositary receipts are listed under the "SSA" ticker on the London Stock Exchange. Sistema's ordinary shares are listed under the "AFKS" ticker on the Moscow Exchange. Website: www.sistema.ru.