Rostelecom OJSC: Statement re ROSTELECOM TO ISSUE BONDS TOTALLING RUB 15 BILLION UK Regulatory Announcement MOSCOW ROSTELECOM TO ISSUE BONDS TOTALLING RUB 15 BILLION Moscow, Russia – October 23, 2012 – Rostelecom OJSC (the “Group”) (MICEX - RTS: RTKM, RTKMP; OTCQX: ROSYY), Russia’s national telecommunications operator, announces that it has started to pre-market its RUB 15 billion bond issues. The Company is expected to issue two sets of bonds by the end of the first half of November 2012, which form part of an approved bond issue programme worth a total nominal value of RUB 100 billion. Bond issue №15 will amount to RUB 5 billion and bond issue №17 will amount to RUB 10 billion. VTB Capital CJSC, Gazprombank OJSC and CJSC “Sberbank CIB” will organise the placements. The two sets of bonds will have the following characteristics: *The nominal value of a single bond will be RUB 1,000 *Bonds will mature in 5 years *A put option can be exercised after 3 years *The coupon period has 182 days. It is anticipated that order books will be opened on October 31, 2012, with a closing date of November 1, 2012. It is expected that bonds will be traded on the MICEX–RTS Stock Exchange and will be included on Quotation list “A1”. * * * For more information please visit www.rostelecom.ru or contact: Investor Relations Department Tel. +7 (499) 995 97 80 email@example.com * * * Rostelecom (www.rostelecom.ru) is Russia’s national telecommunications operator and now also includes the regional incumbent telecommunications operators (CentreTelecom, SibirTelecom, Dalsvyaz, Uralsvyazinform, VolgaTelecom, North-West Telecom and Southern Telecommunications Company) and Dagsvyazinform. Rostelecom has the largest domestic backbone network (approximately 500 thousand km) in Russia. The Company holds licences to provide a wide range of telecommunications services (telephony, data, TV and value-added solutions) to residential, corporate and governmental subscribers and fourth party operators across all regions of the Russian Federation. The Rostelecom brand is one of Russia’s ten most trusted brands (source: Romir market research). Rostelecom’s ordinary and preferred shares are traded on the MICEX-RTS (RTKM, RTKMP) stock exchange, and its depository receipts are traded over-the-counter in the United States on the OTCQX under the symbol ‘ROSYY’. Rostelecom is directly and indirectly majority owned (55.2% of ordinary shares) by the Russian Government and has a free float of less than 40% of the outstanding ordinary shares and over 70% of the outstanding preferred shares. Rostelecom was assigned a ‘BBB-’ and ‘BB+’ international credit ratings by Fitch Ratings and Standard&Poor’s respectively, both with a ‘Stable’ outlook. Rostelecom had 27.8 million local fixed-line voice subscribers, 12.9 million mobile voice subscribers, 8.6 million fixed-line broadband subscribers and 6.2 million pay-TV subscribers at the end of 2Q 2012. The Group generated RUB 159.9 billion of consolidated revenues, RUB 64.7 billion of OIBDA (40.5% of revenues) and RUB 23.4 billion of net income for the six months ended June 30, 2012. * * * Certain statements in this press release are forward-looking statements within the meaning of the U.S. federal securities laws and are intended to be covered by the safe harbors created thereby. Those forward-looking statements include, but are not limited to: *Management’s assessment of the Company’s future operating and financial results as well as forecasts of the present value of future cash flows and related factors; *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 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 after the date hereof or to reflect the occurrence of unanticipated events, except as may be required under applicable laws. Contact: Rostelecom OJSC
Rostelecom OJSC: Statement re ROSTELECOM TO ISSUE BONDS TOTALLING RUB 15 BILLION
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