By Marisa Wong
Los Angeles, Aug. 1 – Mobile TeleSystems PJSC (MTS) announced the successful completion of the bookbuild for its RUB 20 billion series 001P-22 exchange-traded bonds with a maturity of two years and a coupon of 8.3% and the RUB 7 billion series 001P-02 exchange-traded bonds for MTS Bank with a maturity of three years and a coupon of 9.55%.
The book-building for both issues took place on July 29, with about 70 orders received from a wide range of investors, including banks, investment, asset management and insurance companies, private pension funds and retail investors, according to a press release on Monday.
Due to the high degree of interest, the bid book for the MTS bonds was 3.5 times oversubscribed, and the bid book for the MTS Bank bonds was nearly three times oversubscribed.
The robust demand for both issues made it possible to lower the coupon rate several times and to close the books at the lower end of the final range, at 8.3% and 9.55%, respectively, and to more than double the initially declared value of the placements, to RUB 20 billion from RUB 10 billion and to RUB 7 billion from RUB 3 billion, respectively.
MTS noted in the press release that 8.3% is the lowest rate among all public placements on the Russian local market for 2022.
The MTS 001P-22 bonds are part of an exchange-traded bonds program dated July 27, 2016. The nominal price of the bonds is RUB 1,000, and the coupon period is 91 days.
The MTS Bank 001P-02 bonds are part of exchange-traded bonds program dated April 9, 2021. The nominal price of the bonds is RUB 1,000, and the coupon period is 91 days.
The lead managers of both issues were Bank GPB JSC, Locko-Bank JSC, Credit Bank of Moscow PJSC, Rosbank PJSC, Solid IF JSC and BCS Global Markets.
Bank GPB JSC was the placement agent.
The technical placement of the issues will take place on the Moscow Exchange on Aug. 5.
The funds raised will be used for debt refinancing and for general corporate purposes.
MTS is a Moscow-based mobile operator and provider of media and digital services.
| Issuer: | Mobile TeleSystems PJSC, MTS Bank
|
| Amount: | RUB 27 billion
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| Issue: | Exchange-traded bonds
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| Lead managers: | Bank GPB JSC, Locko-Bank JSC, Credit Bank of Moscow PJSC, Rosbank PJSC, Solid IF JSC and BCS Global Markets
|
| Placement agent: | Bank GPB JSC
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| Book-building: | July 29
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| Placement date: | Aug. 5
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| Series 001P-22 bonds
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| Issuer: | Mobile TeleSystems PJSC
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| Amount: | RUB 20 billion
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| Maturity: | Two years
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| Coupon: | of 8.3%
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| Series 001P-02 bonds
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| Issuer: | MTS Bank
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| Amount: | RUB 7 billion
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| Maturity: | Three years
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| Coupon: | 9.55%
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