SSA.L Regulatory News (SSA)

 Sistema releases its block of MTS shares from pledge

Moscow, 02 September 2020 - Sistema PJSFC ("Sistema" or the "Corporation") (LSE: SSA, MOEX: AFKS), a publicly traded diversified Russian holding company, announces the signing of an agreement with PJSC Sberbank of Russia ("Sberbank") whereby Sistema's stake in MTS (NYSE: MBT, MOEX: MTSS), Russia's largest telecom operator and provider of digital services, has been fully released from pledge.

A loan of RUB 60.0 bln maturing in 2023, secured by a pledge of 16% MTS shares, was raised by Sistema in February 2018. In November 2019, Sistema signed an agreement to extend the maturity of the loan to 2025. In September 2020, the pledge was fully released. The outstanding loan amount is RUB 37.9bln.

Vladimir Travkov, Sistema's Vice President for Finance, commented:

"New agreement with Sberbank is another step forward in optimisation of our debt portfolio. Removal of the pledge from the MTS shares was made possible by the growth in the value of the Corporation's assets and reduction of the debt leverage. We are pleased to continue working with our long-term partner Sberbank under the new terms of unsecured lending."

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Sistema PJSFC is a publicly traded diversified Russian holding company serving over 150 million customers in the sectors of telecommunications, technology, banking, retail, timber processing, agriculture, real estate, tourism and healthcare services. The company was founded in 1993. In 2019, its revenue was RUB 656.9bn; its total assets equalled RUB 1.3tn as of 31 December 2019. Sistema's global depositary receipts are listed under the "SSA" ticker on the London Stock Exchange, and its ordinary shares are listed under the "AFKS" ticker on Moscow Exchange. Website: www.sistema.ru

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