OREANDA-NEWS. Open Joint Stock Company “MegaFon” (“MegaFon”, or the “Company”) (LSE: MFON), a leading Russian universal telecommunications operator, has closed subscription for its Series BO-04 Rouble denominated bonds amounting to RUB 15 Bn (the “Bonds”) ahead of schedule on 14 May 2014.

The transaction attracted substantial interest in the investor community. Within the first 24 hours after the book opening investors made over 100 bids. The overall demand for the bond offering led to oversubscription by more than 4 times, which in turn allowed to reduce the initial marketing coupon guidance twice, from 9.80-10.00% p.a. to 9,45%-9,60% p.a. and set the final coupon rate for the Bonds at 9,45% p.a.

“We highly appreciate the fact, that after a long period of scarce primary activity in the market, MegaFon's bond offering has been met with a very strong demand. We thank all of our investors for their continuing confidence towards us, even in times of very difficult market conditions”, - said Ivan Tavrin, CEO of MegaFon.

Gazprombank, Raiffeisenbank and UniCredit Bank are acting as the lead arrangers of the Bonds issue. Gazprombank is acting as the placement agent.

Allocation of the Bonds to investors will occur on the Moscow Exchange on 20 May 2014. On the anniversary of the placement date the coupon rate will be subject to revision and the Bonds may be subject to a put option.