PJSC ROSTELECOM / Miscellaneous - Low Priority
ROSTELECOM ANNOUNCES RUB 10 BLN BOND PLACEMENT
The initial coupon rate range was set within 8.80 - 8.95% per annum, which corresponds to a bond offer yield of 8.99-9.15%. Investors' considerable interest in the offering reflected in a total of 49 book orders accepted by Rostelecom from all investor groups, including banks, investment companies, management companies, insurance companies and private investors. As a result the issue was oversubscribed by 4.7 times.
Kai-Uwe Mehlhorn, Senior Vice-President and Chief Financial Officer, commented: 'We closely monitor market developments and we are in a position to secure attractive financial instruments to optimise our debt portfolio in terms of its structure and costs of servicing. Our decision to conduct a bond placement is based on the attractive financing opportunities currently available in the public debt market and the level of interest that Rostelecom is attracting. As a result we have achieved the most successful placement in the Russian corporate bond market in the last three years. The funds from the bonds placement are expected to be largely used for refinancing purposes.'
Rostelecom (www.rostelecom.ru) is one of the largest national telecommunications operators in Russia and Europe. The Company operates in all segments of the telecommunications market and covers millions of households in Russia.
Rostelecom is an undisputable leader of the broadband and pay-TV markets in Russia with over 12.0 million fixed-line broadband subscribers and over 9.0 million pay-TV subscribers, over 3.9 million of which are subscribed to Rostelecom's IPTV services.
The Group generated RUB 297.4 billion of consolidated revenues, RUB 96.8 billion of OIBDA (32.5% of revenue) and RUB 12.2 billion of net income in 2016.
The Group is a market leader in providing telecommunications services to government bodies and corporates of all levels.
Rostelecom is an important innovator that provides solutions in the field of E-Government, cloud computing, healthcare, education, security and housing & utility services.
The Group's stable financial position confirmed by its credit ratings. Rostelecom was assigned 'BBB-' and 'BB+' international credit ratings by Fitch Ratings and Standard&Poor's respectively.
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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 Rostelecom's PJSC (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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