Corporate Communications

VTB Group and Gazprombank Arranged a Placement of 15 bln RUR MTS 04 Bonds Issue

19 May 2009

VTB Group and Gazprombank (Open Joint Stock Company) announced that the placement of 15 bln RUR MTS 04 bonds issue has been successfully accomplished. The total demand for MTS 04 bonds equaled 25,72 bln RUR.

The bids from 94 investors have been accepted with nearly 15% placed by international investors. The coupon rate is 16,75% that equals 16,75% per annum for 2 years offer.

The placement has been held on MICEX in book-building format, the placement agent – Gazprombank. The bonds are included into MICEX quotation list “B “. The circulation period is 5 years.

ALOR Invest, Credit Europe Bank, IB OTKRITIE and Sovcombank acted as co-arrangers while Citi Bank, Deutsche Bank, Goldman Sachs, BCS, GLOBEXBANK, BC REGION, Russian Agricultural Bank, Sviaz-Bank, the Ural Bank of Reconstruction and Development acted as underwriters of the issue.

Merrill Lynch, UBS, UnicreditBank, EC Ingosstrakh, Baltinvestbank, IB VESTA, Russian Regional Development Bank, IG Capital, LOCKO Bank, Bank of Moscow, Rossiyskiy Kredit Bank, TransCreditBank and Center-Capital were appointed as co-underwriters of the issue.

MTS has long-term international ratings: BB (Negative) by S&P, Ba2 (Stable) by Moody’s and BB + (Negative) by Fitch. All previous MTS 01-03 issues are included in Bank of Russia REPO list.

Andrey Solovyev, Global Head of Debt Capital Markets, VTB Capital, Investment Business of VTB Group, said: “The placement marks a landmark in VTB Capital business as well as in the development of Russian debt capital market in general. We are glad that MTS as the borrower with high credit quality has chosen us to be the arranger. The project’s results demonstrate the growth of investors’ interest towards debt corporate market. We expect that these positive signs mark the change of the trend on Russian debt capital market”.

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