Mobile TeleSystems : MTS raises over RUB 40 billion in two issues of floating-rate exchange-traded bonds

Moscow - PJSC MTS (MOEX: MTSS), a digital ecosystem, announces the completion of book building for the placement of two issues of exchange-traded bonds: series 002P-04 bonds with a floating coupon rate tied to the ruble overnight index average rate (RUONIA) and series 002P-05 bonds with a floating coupon rate tied to the Bank of Russia's key rate.

The book build took place on March 21, 2024, with initial benchmark spreads of no more than 1.60% over the RUONIA rate and the Bank of Russia's key rate. The benchmarks were lowered three times during the book build, finally settling at the RUONIA rate plus 1.40% and the Bank of Russia's key rate plus 1.30% per annum. A more than twofold oversubscription allowed the Company to increase the total value of the placement to RUB 42 billion-up from the RUB 20 billion announced originally- including RUB 17 billion in series 002P-04 bonds and RUB 25 billion in series 002P-05 bonds.

"By simultaneously placing two bond issues with floating coupon rates tied to two different market indicators, and considering market-friendly calculations, we were able to maximize demand on the part of investors focused on both indicators. The record amount of the placement, both for the MTS and for the telecom-sector, makes it clear that bonds issued by MTS, the industry leader, are in high demand among investors," said Alexander Smirnov, Director of MTS's Corporate Finance and Treasury Department.

The bonds are expected to get a Level 1 listing on Moscow Exchange, and Expert RA, NCR and ACRA are all expected to assign credit ratings for the securities.

The maturity of the bonds is 3 years and 6 months. The face value of the bonds is RUB 1,000, with a coupon period of 91 days and a placement price of 100% of the face value. The technical placement date is March 28, 2024.
The funds raised will be used to refinance the Company's current debt and for general corporate purposes.

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For further information, please contact in Moscow:
Investor Relations Department
Mobile TeleSystems Public Joint Stock Company
Tel: [phone]
E-mail: [e-mail]

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Mobile TeleSystems Public Joint Stock Company ("MTS" - MOEX: MTSS) is Russia's ecosystem providing network-native digital services and largest mobile operator. The company offers a full range of solutions for consumers and business customers across wireless and wireline connectivity; over-the-top, linear, and satellite television; digital-first banking and financial services; as well as unified communications, cloud computing and IoT. There are more than 86 million mobile subscribers using MTS services across the company's operations in Russia and Belarus, including more than 81 million subscribers in Russia alone. In addition, MTS has a nationwide network of more than 4,400 owned and franchised retail outlets in Russia, and provides nearly 10 million clients with broadband, TV, and/or fixed-line telephone connectivity, over 13 million users - with OTT and pay TV services. The number of ecosystem clients exceeds 15 million. MTS's shares are listed on the Moscow Exchange under the ticker MTSS. For more information, please visit the company's Investor Relations website at ir.mts.ru.
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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 MTS, as defined in the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact, are forward-looking statements, including, but not limited to, statements regarding our voluntary deregistration, the timing of the effectiveness of the Form 15F, and our future filing obligations and disclosure plans. You can identify forward looking statements by terms such as "expect," "believe," "anticipate," "estimate," "intend," "will," "could," "may" or "might," and 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. We do not undertake or intend to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. We refer you to the documents MTS files from time to time with the U.S. Securities and Exchange Commission. These documents contain and identify important factors, including those contained in the section captioned "Risk Factors" that could cause the actual results to differ materially from those contained in our projections or forward-looking statements, including, among others, the severity and duration of current economic and financial conditions, including the ongoing geopolitical situation relating to the conflict in Ukraine, the expansion of sanctions imposed on the Russian Federation by the United States, European Union and United Kingdom, volatility in interest and exchange rates (including fluctuations of the value of the Russian ruble against the U.S. dollar and the Euro), commodity and equity prices and the value of financial assets; the impact of Russian, U.S. and other foreign government programs to restore liquidity and stimulate national and global economies, our ability to maintain our current credit rating and the impact on our funding costs and competitive position if we do not do so, strategic actions, including acquisitions and dispositions and our success in integrating acquired businesses, potential fluctuations in quarterly results, our competitive environment, dependence on new service development and tariff structures, rapid technological and market change, acquisition strategy, risks associated with telecommunications infrastructure, governmental regulation of the telecommunications industries and other risks associated with operating in Russia and the CIS, volatility of stock price, financial risk management and future growth subject to risks.
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