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Presented by: VTB Bank, Custody

August 22, 2019 Issue No. 2019/31

Company News

Holders of RUB 15 bln bonds of UWC delay maturity for 5 years On August 16, 2019 it was reported that holders of RUB 15 bln of 5-year bonds of Russian rail car producer United Wagon Company (UWC) that were to mature on September 10 had agreed to delay repayment for five years, to repay principal debt in installments, and to increase the tenor of the coupon periods. The bonds’ first coupon stood at 12.5% annually. Now, they will mature on September 3, 2024, with 25% of the principal debt redeemed on September 30, 2019, and 75% of the principal debt redeemed at the maturity date. The coupon periods was also extended to 30, and the rate on the coupon periods from 11th to 30th will amount to 9.55% annually, or RUB 19.16 per paper for the 11th period and RUB 17.86 for coupons from 12th to 30th.

Global Ports buys back USD 52.8 mln bonds of issue placed in 2016 On August 16, 2019 it was announced that Russian container operator Global Ports bought back USD 52.8 mln worth of 2022 bonds from USD 350 mln issue placed in 2016. The bonds were placed at a yield of 6.872% annually. The bonds will remain on the books of the company, no cancellation or resale is planned. An official said that the company used funds from its operating activities to buy the bonds, in accordance with an intent to cut the debt burden.

Lukoil to buy back shares at RUB 5,450 per share On August 19, 2019 it was reported that would buy back about 42% of the 82.9 mln shares its shareholders submitted for a buyback at RUB 5,450 per share. The company received applications for 82,891,133 shares during the public offer period, including an application for 36,624,079 shares from Lukoil Securities Limited (a 100% subsidiary of the company). In June, the board of directors of the company approved reduction of Lukoil’s shareholder equity by buying RUB 35 mln shares. The acquisition of shares will be implemented on a pro data basis. The shares will be acquired at a price of RUB 5,450 per share and paid for through August 28, 2019. The acquired shares will be cancelled immediately upon their delivery on the Lukoil treasury account, which will result in a reduction of Lukoil’s charter capital to 715 mln ordinary shares.

Court delays suit over Orient Express Bank share issue till September 17, 2019 On August 20, 2019 it was announced that the Arbitration Court of the Amur Region delayed until September 17 hearings of a lawsuit of Artyom Avetisyan’s Finvision against Orient Express Bank seeking to void some decisions of the bank’s board of directors on an extra share offering and the offering itself due to a necessity to make an appraisal expertise. Alexei Artemenko, a representative of Evison Holdings Ltd, controlled by Baring Vostok, stated that the hearing was postponed due to the need to provide candidatures for a judicial assessment of the value of the bank’s shares and to provide additional positions on the merits of the stated requirements. A request for adjournment was filed by both parties, an application for the expertise was filed by the representative of the plaintiff. Evison is taking participation in the process as a third party. Avetisyan’s company earlier received control over Orient Express Bank under a court decision.

Subsidiary of Russia’s Uralkali raises stake in company On August 20, 2019 it was reported that Uralkali-Technologiya would acquire 7.6 mln common shares of its parent, Russian fertilizer maker Uralkali, from the company within 60 days after a corresponding agreement was signed. The subsidiary’s stake will rise to 1.667 bln shares after the acquisition. As of June 30, Uralkali-

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Technologiya held 56.53358% in Uralkali, fertilizer producer UralChem of Dmitry Mazepin owned about 20%, and Rinsoco Trading owned 20.19%.

Rosseti may buy 40.4% in Siberia IDGC from SUEK On August 21, 2019 it was stated that power grid holding Rosseti seeks to buy a 40.4% stake in Siberia Interregional Distribution Grid Company (Siberia IDGC) from Siberian Coal Energy Company (SUEK). Earlier in August, Deputy Prime Minister Dmitry Kozak ordered the Economic Development Ministry, the Energy Ministry, the Finance Ministry, and the Federal Antimonopoly Service to develop proposals to attract investments in the power grid complex and submit them to the government. According to a letter of the Energy Ministry to Kozak dated on August 6, the ministry and SUEK held talks over attracting private investments into Siberia IDGC in April. SUEK notified the ministry about the need to thoroughly develop the issue, but did not provide any proposals. The ministry believes it is early to further consider raising SUEK’s stake in Siberia IDGC taking into account Rosseti’s negative attitude to the issue. Instead of the sale, Rosseti has proposed to buy out SUEK’s 40.4% stake in Siberia IDGC at a value defined with participation of international financial consultants. Analysts have estimated that the stake could cost around RUB 12 bln.

Board of directors of Alfa-Bank nod creation of unit in Cyprus On August 21, 2019 the board of directors of Russia’s Alfa-Bank decided to establish a subsidiary in Cyprus – Alfa Capital Markets Ltd. – that would deal in corporate investment business at foreign markets. A spokeperson for the bank said that the board of directors of Alfa-Bank decided to create Alfa Capital Markets Ltd. on the territory of the Republic of Cyprus after the bank receives all approvals and permissions from the Russian and Cypriot regulators in accordance with the legislation. Preparations will take no less than a year. It will be a subsidiary of Alfa-Bank.

Dividends/coupons En+ Group expects to restart dividend payment for 2019 On August 16, 2019 it was reported that the board of directors of En+ Group expects to restart dividend payment after publication of the financials for 2019.

Rusagro board recommends paying RUB 1.684 bln in January–June 2019 dividends On August 19, 2019 the board of directors of Russian agricultural holding Rusagro recommended paying RUB 1.684 bln in dividends for January–June. The record date is September 13. Dividends for January– June 2018 stood at RUB 1.026 bln. The family of Russian businessman Vadim Moshkovich owns around 71.9% in Rusagro, CEO Maxim Basov holds 7.3%, and free-float accounts for 20.8%.

Qiwi board approves dividends for April–June 2019 at USD 0.28 per share On August 19, 2019 the board of directors of Russian payment system operator Qiwi approved dividends of USD 0.28 per share upon results of April–June. The dividend record date is set on August 30, and the company intends to pay the dividend on September 3. Holders of American depositary receipts will receive the dividend shortly thereafter. In accordance with the decision of the board of directors, Qiwi aims to distribute between 65% to 85% of its adjusted net profit for 2019 starting from January–March.

TransContainer board recommends paying RUB 2 bln in January–June 2019 dividends On August 20, 2019 the board of directors of Russian container shipping company TransContainer recommended paying RUB 154.57 per share, or a total of RUB 2.147 bln, in dividends for January–June. The recommendation is yet to be considered by the company’s shareholders at an extraordinary general meeting. In January–June, the company’s net profit amounted to RUB 6.1 bln, as calculated under Russian Accounting Standards (RAS). An auction for Russian Railways’ 50% plus two shares stake in TransContainer with a starting price of RUB 36.159 bln is scheduled for November 27. Other shareholders include Yenisei Capital affiliated with and with 24.5% and VTB with 24.8%.

TCS Group to decide on dividend policy in late 2019 On August 20, 2019 Sergei Pirogov, director for corporate financing at Russia’s TCS Group, which includes Tinkoff Bank and Tinkoff Insurance, said that the group would make a decision on its dividend policy in late 2019 after appraisal of the loan portfolio growth potential for 2020. TCS said in June that it suspends dividend payments until the end of 2019 to support growth of lending and ensure the necessary level of capital.

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Norilsk Nickel board recommends RUB 883.93 per share in January–June 2019 dividends On August 20, 2019 the board of directors of Russian metals giant recommended paying RUB 883.93 per share, or a total of around RUB 140 bln, in dividends for January–June. The shareholders will consider the recommendation at an extraordinary general meeting on September 26. The record date is October 7. The company paid RUB 776.02 per share in dividends for January–June 2018.

Cherkizovo board recommends RUB 48.79 per share in January–June dividends On August 21, 2019 the board of directors of Russian meat producer Cherkizovo Group recommended paying RUB 48.79 per share in dividends for January–June. The company paid RUB 20.48 per share in dividends for January–June 2018. Cherkizovo Group’s shareholders earlier approved paying RUB 101.63 per share, or a total of RUB 4.468 bln, in dividends for 2018. The family of the group’s founder Igor Babayev controls 89.5% in the group.

Rosneft board recommends 50% of IFRS profit in dividends for January–June 2019 On August 21, 2019 the board of directors of Russian oil major recommended paying 50% of the International Financial Reporting Standards (IFRS) profit, or RUB 162.6 bln, in dividends for January–June. Rosneft will pay RUB 15.34 per share. The record date is October 11. The decision is subject to approval of an extraordinary general meeting of shareholders on September 30.

Please be advised that the information presented in this newsletter is based on the following sources: National Settlement Depository (NSD); Clearstream Banking; Euroclear Bank; PRIME-TASS information agency; “Kommersant”, "Rossiyskaya Gazeta”, “Izvestiya, "”, “The Times“ newspapers, and others.

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