MTS announced that it completed the book building of its RUB 15 billion in exchange-traded series 001P-23 bonds with a maturity of two years and a coupon rate of 8.40 percent.

MTS aims to use the funds for general corporate purposes and optimization of its debt portfolio.

The nominal price of the bonds is set at RUB 1,000, the coupon period at 91 days, and the price of placement at 100 percent of the nominal value.

The book building held on December 14, 2022 saw robust demand and, as a result, the coupon was reduced three times from an initial rate of 8.65 percent to a final fixed rate of 8.40 percent.

“Over the past seven months, MTS Group has placed six new issues of ruble bonds with a total volume of RUB 72 billion, which confirms the stably high interest of Russian investors in our bonds. The high assessment of the company’s credit quality by investors allows us to maintain optimal risk premium levels above the base curve,” Alexander Smirnov, Corporate Finance & Treasury Director, MTS, said in a news statement.

The bonds are planned to be included in MOEX’s Level I Quotation List, with a credit rating expected from the Expert RA and NCR (National Credit Ratings) agencies. BCS Global Markets, Veles Capital, Credit Bank of Moscow, Russian Agricultural Bank, Sinara Investment Bank, JSC IFC Solid, and MTS Bank served as arrangers and Bank GPB (JSC) as the placement agent.