OREANDA-NEWS. March 13, 2008. Sistema (LSE: SSA), the largest public diversified corporation in Russia and the CIS, which manages fast growing companies operating in the consumer services sector, today announced that it has successfully placed its RUB 6 billion corporate Bond issue.  The annual interest rate for the first and second coupon payments has been set at 9.45%. The Bonds mature in five years time and coupon payments will be made on a semi-annual basis.  The issue was fully placed and over-subscribed, with application levels of over RUB 9 billion.

The prospectus for the Bond issue was registered by Russia's Federal Financial Markets Service ("FFMS") on February 21, 2008.

VTB Bank and Joint Stock Commercial Bank "ROSBANK" acted as the Co-Lead Managers of the issue. Bank Petrocommerce, URALSIB Financial Corporation, Promsvyazbank and Sberbank acted as the Underwriters of the issue. The Bonds were placed on the Moscow Interbank Currency Exchange (MICEX).

Alexey Buyanov, Senior Vice President and Head of the Finance and Investment Group, commented: "We are pleased to announce the placement of our bond issue, especially in the challenging prevailing credit market environment. The proceeds of the issue will be used to refinance our existing debt facilities and fund our investment programmes. This demonstrates the continued support in the capital markets for our development strategy, as well as the financial solidity of the Group. We would like to highlight the work of the Co-Lead Managers and the high levels of their professionalism exhibited throughout the process."