Moscow, Russia – February 19, 2015 – Sistema JSFC (“Sistema” or the “Company”) (LSE: SSA) today announces that it has completed the placement of RUB 10 billion Series BO-01 unconvertible interest-bearing bonds with a par value of RUB 1,000. 

The bid book was opened on February 17, 2015, with the coupon rate set in the range of 17.0% - 17.5% per annum. Despite challenging market conditions, there was strong demand for the bonds and Sistema closed the bid book at the rate of 17% per annum. 

The bonds mature in 15 years’ time. In addition, bondholders have the right to redeem their bonds at the point of expiration, 18 months from the date the bonds were placed.

Vsevolod Rozanov, Senior Vice-President and Chief Financial Officer of Sistema, commented: “The placement of our bond issue is the first market transaction on the domestic market among corporate borrowers in the BB credit rating category since the beginning of 2014, and the first one in the corporate segment in 2015. This successful placement demonstrates the attractiveness of Sistema’s securities and investors’ continued interest in our investment strategy. We believe that the bond placement provides more attractive terms as compared to bank loans and we plan to use the proceeds to support our investment and corporate activities.” 

Gazprombank and Raiffeisen Bank acted as the Co-Lead Managers of the issue. MTS Bank and Rosselkhozbank were Co-Managers, while Gazprombank acted as the Underwriter of the issue. The bonds were placed on the MICEX Stock Exchange.    

*** 

For further information, please visit www.sistema.com or contact: