BCS Global Markets has acted as Arranger for the series 001Р-22 bond issue by MTS with a nominal value of RUB 20 billion and a coupon rate of 8.30% and MTS Bank's series 001Р-02 bond issue with a nominal value of RUB 7 billion and a coupon rate of 9.55%.
The order books for both issues were made available on July 29, 2022, raising some 70 applications from a wide range of investors, including banks, investment, management and insurance companies, non-state pension funds and retail investors.
High demand drove a 3.5x oversubscription and an almost 3x oversubscription for MTS’ and MTS Bank’s issues, respectively. Strong interest in both issues brought down the first coupon rate target several times, with the books closing at the lower bound of the final range at 8.30% and 9.55% per annum. The placements initially announced at RUB 10 billion and RUB 3 billion more than doubled to RUB 20 billion and RUB 7 billion.
The MTS series 001P-22 issue is part of the exchange-traded bond programme No. 4-04715-A-001P-02E dated July 27, 2016. With a nominal value of RUB 1,000, the issue has a maturity of two years and a coupon period of 91 days.
MTS Bank series 001P-02 issue is part of the exchange-traded bond programme No. 4-02268-B-001P-02E dated April 09, 2021. With a nominal value of is RUB 1,000, the issue has a maturity of three years and a coupon period of 91 days.
The formal placement will take place on Moscow Exchange on August 5, 2022. The borrowings will be used to refinance the companies’ debt and for general corporate purposes.
MTS PJSC is a leader in Russia and the CIS in providing mobile and landline communications, data transmission and Internet access, cable and satellite TV broadcasting services, as well as digital services, including fintech and media embedded in ecosystems, and mobile applications, IT solutions, including communication platforms, IoT, automation, monitoring, data processing, cloud computing, and data security. The majority shareholder is PJSC AFK Sistema.
MTS Bank PJSC is a universal commercial bank, part of Russia’s Top 50 in terms of assets. Founded in 1993, it operates under General License No. 2268 issued by the Bank of Russia on December 17, 2014. The main shareholders are Mobile TeleSystems B.V., a subsidiary of MTS PJSC.
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The continuously evolving nature of the global coronavirus situation has meant we at BCS Global Markets (BCS) are taking all necessary steps to keep business disruption to an absolute minimum.
Effective from today (Wednesday 18th March) employees from all divisions of the business based in our Russia, UK, USA and Cyprus offices who can work from home without creating any even minor possible risk for business continuity of the Group will be working remotely. It is very much business as usual at BCS. Our employees are equipped with secure access to our systems and will follow their normal working hours, keeping in regular contact with their colleagues and clients.
Despite ongoing disruption caused by COVID-19, we want to also assure you that following a sustained period of positive performance, our capital and liquidity position remains very strong. The business is well-placed to meet any subsequent financial challenges and will continue to go above and beyond for our clients.