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Presented by: VTB Bank, Custody

October 10, 2019 Issue No. 2019/38

Company News

CEO says T Plus has no plans to list shares on exchange anew On October 4, 2019 Andrei Vagner, CEO of Russian power producer T Plus, said that the company currently had no plans to list its shares on an exchange again. The company delisted its shares from the Exchange in 2016. The company’s largest shareholders are IES Holding with 32.24%, T Plus’ subsidiary T Plus Invest with 8.19%, and companies controlled by Vitkor Vekeslberg’s Renova Group – Brookweed Trading Limited with 20.47%, Gothelia Management Limited with 12.17%, and Integrated Energy Systems and 11.80%.

Sistema says unit buys back RUB 97.1 mln worth of shares On October 7, 2019 it was reported that Finance, a unit of Russian multi-industry holding Sistema, bought back 7.639 mln common shares worth RUB 97.132 mln. The shares were bought on the from September 26 through October 2. Sistema Finance has purchased a total of 32.359 mln of Sistema’s shares since the launch of the RUB 3 bln buyback program on September 17.

Raven Property fund to spend USD 8 mln to buy back 11.6 mln shares On October 10, 2019 it was stated that Russian real estate investment fund Raven Property Group planned to spend GBP 6.4 mln, or about USD 8 mln, to buy up to 11.622 mln shares in the company. In August, the company announced an offer to buy one in every 44 common shares in the company through a tender offer with the price of 55 pence per share. If the maximum number of 11,621,569 ordinary shares is acquired (assuming no valid conversion of the company's convertible preference shares in the period), this will result in an amount of approximately GBP 6.4 mln being paid by the company to its shareholders. After the buyback, the shares will be cancelled and not eligible for a reissue. In August, Raven Property finished a buyback of 89.14 mln shares in the company, or at least a 15% of its shareholder equity, from Woodford and Invesco.

Minority owner sells 2% in PIK Group for RUB 4.9 bln On October 10, 2019 it was announced that Firlibia Holdings, a minority owner in Russian real estate developer PIK Group, sold 14.2 mln shares in the developer, or an about 2% stake, for RUB 345 apiece or a total of around RUB 4.9 bln. The company sold the stake with a 10.4% discount to closure price on the Moscow Exchange on October 9. J.P. Morgan, VTB Capital, and Gazprombank act as the organizers. Late on October 9, a financial source that Firlibia Holdings planned to sell about 13 mln shares in PIK Group through accelerated bookbuilding. Before the sale, Firlibia owned about 4.9% in PIK Group.

MTS board to consider delisting from NYSE in late October 2019 On October 10, 2019 Alexei Kornya, President of major Russian mobile operator MTS, stated that the company’s board of directors would consider delisting from the New York Stock Exchange (NYSE) at a meeting in late October. MTS said in February it could revise its presence on the markets and would assess the necessity of its listing on the NYSE and consider the Moscow Exchange as the main floor. Vladimir Yevtushenkov, main owner of MTS’ main shareholder, multi-industry holding Sistema, said on October 9 that MTS would not quit the NYSE.

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Dividends/coupons PhosAgro shareholders nod payment of RUB 54 per share in dividends On October 4, 2019 shareholders of Russian fertilizer producer PhosAgro approved payment of RUB 54 per common share, or a total of RUB 6.993 bln, in interim dividends from undisbursed profit of previous years. The record date for the dividends is October 15. In September, the company’s board of directors approved a new dividend policy, under which PhosAgro will allot over 75% of free cash flow for dividends, if net debt/EBITDA ratio is below 1.0; 50–75% of free cash flow if the ratio is 1–1.5; and less than 50% of free cash flow if the ratio exceeds 1.5. The lowest threshold for dividend payments is set at 50% of PhosAgro’s adjusted net profit. Former Senator Andrei Guryev and members of his family hold 48.48% in PhosAgro, Vladimir Litvinenko owns 20.98%, former Board of Directors Member Igor Antoshin holds 4.51%, and free- float is 26.03%.

Eurobonds / DRs Uralkali to start roadshow of dollar Eurobonds on October 9, 2019 On October 7, 2019 a banking source said that Russian fertilizer producer Uralkali plans to launch a roadshow for 5-year U.S. dollar Eurobonds on October 9 and to visit New York, Boston, Zurich, Frankfurt, and London. The roadshow will finish on October 14. J.P. Morgan, Sberbank CIB, Societe Generale, VTB Capital, Credit Agricole CIB, ING, Natixis, Renaissance Capital, UBS, and UniCredit will act as the organizers.

Alfa-Bank sells USD 400 mln 10.5-year Eurobonds at 5.95% On October 8, 2019 Alexei Chukhlov, CFO of Russia’s Alfa-Bank, stated that the bank placed USD 400 mln of 10.5-year subordinated Eurobonds with a coupon rate of 5.95% annually. The bank opened the bidding book for the subordinated Eurobonds on October 7 following meetings with investors that were held last week. Demand for the papers exceeded the final placement amount of USD 400 mln by 50%. The bank initially announced the minimum amount of placement at USD 300 mln, but in the end it placed slightly more – USD 400 mln. Foreign investors – large private banks in particular – bought more than half of the issue. More than 60 institutional investors and brokerage companies from Europe, the U.K., Switzerland, and Asia took part in the deal. The placement covered the bank’s borrowing plan for 2019, but it may carry out other deals. The bank may repay a USD 250 mln subordinated loan issued in 2014 under a call option in February 2020. Obviously, Alfa-Bank replaced that with a new placement, and even slightly raised the use of this instrument in the structure of its capital. The issue carries a call option in 5.5 years. After coordinating the deal with the central bank, Alfa-Bank will include the Eurobonds in its tier-2 capital. Alfa-Bank, JP Morgan, UBS were the organizers of the placement.

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, "Vedomosti”, “The Moscow Times“ newspapers, and others.

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