Rostelecom announces RUB 10 bln Bond placement Coupon rate set at 6.3% per annum



Rostelecom announces RUB 10 bln Bond placement
Coupon rate set at 6.3% per annum

Moscow, Russia – October 7, 2020 – Rostelecom PJSC (MOEX: RTKM, RTKMP; OTCQX: ROSYY), the largest integrated digital service provider in Russia, today announces the placement of its 002P-05R* series bonds at a coupon rate of 6.3% per annum. The bonds have a total nominal value of RUB 10 billion, maturity of 5 years and a nominal value of RUB 1,000 each. The 002P-05R series Rostelecom bonds are expected to be placed on the Moscow Exchange (MOEX) on 14.10.2020.

Funds raised from the bond placement are expected to be used for refinancing purposes. The lead arranger of the offering is Region broker.

Sergei Anokhin, Senior VP and CFO of Rostelecom:

“Management reiterates our major goal of maintaining a comfortable debt structure by increasing the cheaper, long-term debt portion of our debt portfolio. It is clear there is only limited scope for a further decrease of the key rate in Russia. Thus, we are using this window of opportunity to replace the more expensive back book of liquidity with cheaper public debt via a traditional bond instrument. We appreciate the confidence investors have displayed in Rostelecom’s strong credit rating, which has enabled us to attract the financial resources we seek from the market.”

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

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

* * *

Rostelecom is the largest integrated digital services and products provider, operating in all segments of the telecommunications market in Russia. The Company serves millions of households, state and private enterprises across the country.

Rostelecom is Russia’s undisputed market leader, providing high-speed Internet access and pay-TV. The total number of broadband users stands at over 13.4 mln users, it has more than 10.7 mln pay-TV customers, over 5.8 mln of which are subscribed to Rostelecom’s IPTV services. Tele2 Russia, a Rostelecom subsidiary, is a major player in the mobile market with over 44 mln subscribers and the industry-leading NetPromoter Score, a customer satisfaction benchmark.

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. * * *

Certain statements in this press release are forward-looking statements within the meaning of the U.S. federal securities laws and intended to be covered by the safe harbours created thereby.

Those forward-looking statements include, but are not limited to:

  • Assessment of PAO Rostelecom’s (the Company) future operating and financial results as well as forecasts of the present value of future cash flows and related factors;
  • The Company’s plans to take ownership stakes in other organisations;
  • the Company’s anticipated capital expenditures and plans to construct and modernize its network;
  • the Company’s expectations as to the growth in demand for its services, plans relating to the expansion of the range of its services and their pricing;
  • the Company’s plans with respect to improving its corporate governance practices;
  • the Company’s expectations as to its position in the telecommunications market and forecasts on the development of the market segments within which the Company operates;
  • economic outlook and industry trends;
  • the Company’s expectations as to the regulation of the Russian telecommunications industry and assessment of impact of regulatory initiatives on the Company’s activity;
  • other statements regarding matters that are not historical facts.

 

Such forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from those expressed or implied by these forward-looking statements. These risks, uncertainties and other factors include:

  • risks relating to changes in political, economic and social conditions in Russia as well as changes in global economic conditions;
  • risks relating to Russian legislation, regulation and taxation, including laws, regulations, decrees and decisions governing the Russian telecommunications industry, securities industry as well as currency and exchange controls relating to Russian entities and their official interpretation by regulatory bodies;
  • risks relating to the Company, including the achievement of the anticipated results, levels of profitability and growth, ability to create and meet demand for the Company’s services including their promotions, and the ability of the Company to remain competitive in a liberalized telecommunications market;
  • technological risks associated with the functioning and development of the telecommunications infrastructure, technological innovations as well as the convergence of technologies;
  • other risks and uncertainties. For a more detailed discussion of these and other factors, see the Company’s Annual Report and the Company’s other public filings.

Many of these factors are beyond the Company’s ability to control or predict. Given these and other uncertainties, readers are cautioned not to place undue reliance on any of the forward-looking statements contained herein or otherwise. The Company does not undertake any obligation to release publicly any revisions to these forward-looking statements (which are made as of the date hereof) to reflect events or circumstances upon the annual report publication or to reflect the occurrence of unanticipated events, except as may be required under applicable laws.

 

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