OREANDA-NEWS. Open Joint Stock Company “MegaFon” (“MegaFon”, or the “Company”) (LSE: MFON), a leading Russian universal telecommunications operator, announces that its Board of Directors gave approval to the Company to issue interest-bearing non-convertible bearer ruble-denominated exchange bonds in five series (Series BO-01, BO-02, BO-03, BO-04 and BO-05) (together — the “Programme”) and approved the legally required documentation for the Programme, including the corporate decisions on issue and the prospectus (together — the “Documentation”). The Programme remains subject to the registration of the Documentation by the Moscow Interbank Currency Exchange (“MICEX”). The Documentation will be filed with MICEX for registration in due course.

Following, and subject to, MICEX registration of the Documentation, the final decision on the timing and terms for the placement of each of the five series of bonds comprising the Programme will be made by the Company at a later stage subject to market conditions. The Board approved the following key terms for the Programme:

(1) Total maximum principal amount

The total maximum principal amount of the Programme will be RUB 60 billion, consisting of five series of bonds. The first three series (series BO-01, B0–02 and BO-03) will be in the maximum amount of RUB 10 billion each, while the remaining two series (series BO-04 and BO-05) will be in the maximum amount of RUB 15 billion each.

(2) Maturity date

Each of the five series of bonds comprising the Programme will mature on the 3,640th day (the “Maturity date”) following the date when the placement of the respective series commences (the “Placement date”).

(3) Coupons

The coupon rate and type for each of the five series of bonds comprising the Programme shall be determined either by an auction to be held on the relevant Placement date or by book building exercise held prior to the relevant Placement date. The coupon rate of each series of bonds comprising the Programme will be subject to further determination in accordance with the Documentation (for coupons which are not determined at the relevant Placement date). Pursuant to the Documentation, coupon payments will be made every 182 days.

(4) Repayment schedule

The principal amount of each of the series of bonds comprising the Programme shall be repaid either in a single payment on the relevant Maturity date, or as set out in the amortization schedule for the relevant series of bonds determined by the Company prior to the relevant Placement date in accordance with the Documentation.

(5) Early repayment

The Programme provides for early repayment of bonds in certain cases at the Company’s discretion or subject to holders’ request (depending on the applicable legislation requirements and the provisions set out in the Documentation).

The Company will make further announcement(s) to notify the public on the development of the Programme as and when appropriate or as required under the Listing Rules and/or applicable national laws and regulations.