30 Jul 2018 10:30
Sistema secures credit facility from Otkritie Bank to refinance RDIF/Gazprombank loan
Moscow, Russia - 30 July 2018 - Sistema PJSFC ("Sistema" or the "Company") (LSE: SSA, MOEX: AFKS), a publicly-traded diversified holding company, announces the signing of a сooperation agreement with Otkritie Bank, under which Sistema has attracted an unsecured RUB 15 bn loan maturing in July 2021. The new credit facility and the use of the Company's own funds in the amount of RUB 5 bn allowed the Company to complete repayment of the 180-day RUB 40 bn loan arranged by the Russian Direct Investment Fund (RDIF) and financed by Gazprombank in February 2018 for the execution of obligations under the settlement agreement with PJSOC Bashneft, Rosneft and the Republic of Bashkortostan. Prior to that, in the first quarter of 2018, RUB 20 bn of the RDIF/Gazprombank facility were refinanced using a line of credit from Sberbank. Sistema thanks the RDIF for its assistance in the execution of the settlement agreement.
Vladimir Travkov, Sistema Vice President and Chief Financial Officer, said:
"We're pleased to begin a multifaceted cooperation between Sistema and its subsidiary companies and Otkritie Bank in the areas of financing for ongoing business and investment activities as well as capital markets. Securing the Otkritie Bank loan removes the pledge from Sistema's shareholding in PJSC Detsky Mir (52.099%), lengthens the tenor of the Company's debt portfolio and establishes a more manageable repayment schedule. Drawing on the Company's own funds to redeem the RDIF/Gazprombank loan also allows us to reduce Sistema's debt load."
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Sistema PJSFC is a publicly-traded diversified Russian holding company serving over 150 million customers in the sectors of telecommunications, children's goods retail, paper and packaging, healthcare services, agriculture, high technology, banking, real estate, pharmaceuticals and hospitality. The company was founded in 1993. Its revenue in 2017 was RUB 704.6 bn; its total assets equalled RUB 1.1 trn as of 31 December 2017. 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 Moscow Exchange. Website: www.sistema.com.
The Company is not an investment company, and is not and will not be registered as such, under the U.S. Investment Company Act of 1940.
Some of the information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of Sistema. You can identify forward looking statements by terms such as "expect," "believe," "anticipate," "estimate," "intend," "will," "could," "may" or "might" the negative of such terms or other similar expressions. We wish to caution you that these statements are only predictions and that actual events or results may differ materially. In addition, there is no assurance that the new contracts entered into by our subsidiaries referenced above will be completed on the terms contained therein or at all. We do not intend to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Many factors could cause the actual results to differ materially from those contained in our projections or forward-looking statements, including, among others, general economic conditions, our competitive environment, risks associated with operating in Russia, rapid technological and market change in our industries, as well as many other risks specifically related to Sistema and its operations.