SSEECCUURRIIITTIIIEESS MMAARRKKEETT NNEEWWSSLLEETTTTEERR weekly Presented by: VTB Bank, Custody June 10, 2021 Issue No. 2021/21 Internal Custody News Please be advised that June 12 th 2021 is a public holiday in Russia - “Russia’s Day”. Please note that June 11 th is a short working day, and June 14 th is an official day off. Market News Cbank sells RUB 129.6 bln of coupon bonds out of RUB 300 bln offer On June 8, 2021 it was disclosed that on that day Russia’s central bank had sold RUB 129.643 bln of coupon bonds out of a limit of RUB 300 bln. Demand totaled RUB 129.661 bln. The cut-off price amounted to 100% of a face value, while the weighted average price stood at 100.0001%. The settlement date was June 9. Finance Ministry places RUB 81.85 bln OFZ bonds On June 9, 2021 it was stated that Russia’s Finance Ministry had placed RUB 81.85 bln of OFZ government bonds at two auctions on June 9. At the first auction, the ministry placed RUB 60.987 bln of OFZ 26235 government bonds with a fixed coupon maturing in March 2031. The cut-off price amounted to 90.5755% and the weighted average price stood at 90.6418%. The weighted average yield amounted to 7.38% and the cut-off yield to 7.39%. Demand totaled RUB 147.999 bln. At the second auction the ministry placed RUB 20.863 bln of OFZ 52003 government bonds maturing in July 2030. The cut-off price amounted to 98.1% and the weighted average price stood at 98.1659%. The weighted average yield amounted to 2.75% and the cut-off yield to 2.76%. Demand totaled RUB 38.937 bln. Company News TotalEnergies buys 10% in LNG transshipment business of Novatek On June 3, 2021 it was stated that France’s TotalEnergies had signed a deal to acquire 10% in Arkticheskaya Perevalka, a unit of independent gas producer Novatek for transshipment of liquefied natural gas (LNG). The unit is an operator of two to-be-built LNG reloading facilities located on the Kamchatka Peninsula and in the Murmansk Region. Besides that, the two companies signed a memorandum of understanding in the spheres of decarbonization, production of hydrogen, and utilization of renewable energy sources. Otkritie plans to sell 15–20% stake at IPO in 2022 On June 3, 2021 CEO of Otkritie Financial Corporation (FC) Bank Mikhail Zadornov said at St. Petersburg International Economic Forum that the bank plans to place an about 15–20% stake during an initial public offering (IPO) in 2022. He added that the bank wants to attract private and institutional investors. RDIF CEO sees e-cinema ivi as strong candidate for IPO On June 4, 2021 CEO of Russian Direct Investment Fund (RDIF) Kirill Dmitriev told reporters that online cinema ivi is a promising candidate for an initial public offering (IPO), which could trigger high interest among investors. He also added that this year is one of the most successful for the Russian IPOs which had already raised USD 3.7 bln since the beginning of the year. RDIF is among ivi’s investors in line with funds Baring Vostok, RTP Global, Flashpoint, Winter Capital, and Mubadala. 1 Sistema raises stake in developer Etalon to 30% On June 7, 2021 it was stated that multi-industry holding Sistema, the key shareholder of developer Etalon, had raised its stake in the company by 4.2 percentage points to 29.79%. Sistema acquired 16.16 mln global depositary receipts (GDP) of Etalon from the minority shareholders, including fund Baring Vostok. The financial details of the deal were not disclosed. TMK management expects no quarterly dividend payments soon On June 7, 2021 Vice President for Strategy of Russian oil and gas pipe producer TMK Vladimir Shmatovich told reporters that the management of the company does not expect TMK to start paying quarterly dividends soon, and does not expect changes to the dividend policy after acquisition of Chelyabinsk Pipe Plant (ChelPipe). TMK Previously paid RUB 9.67 per share, or a total of RUB 9.990 bln, in dividends for 2020. The company is now focused on debt reduction since it spent its own and borrowed money to buy ChelPipe and as the acquired asset also has debts. The shareholders should not expect dividends similar to what the company paid for 2020. TMK plans to maintain a public status, but it doesn’t have the goal of expanding its free-float. The shareholders should decide whether the free-float should be expanded or not, but the company is very unlikely to issue new shares only to raise free-float, Shmatovich said. It is unreasonable for the company to return to the London Stock Exchange after delisting. Shmatovich also said that TMK expects its capital expenditures to exceed USD 200 mln per year slightly in 2021 and in the several coming years following acquisition of ChelPipe. The company doesn’t need to raise expenditures as it now does not lack production capacities. Its facilities are up-to-date and need no upgrades. In general, the synergy from ChelPipe acquisition will be higher that the initially estimated figure of 10% of TMK’s earnings before interest, taxes, depreciation, and amortization (EBITDA) in 2021, but TMK will still continue work to improve synergy, he added. Dmitry Pumpyansky, chairman of the board of directors, is the main beneficiary owner of the company. Otkritie FC Bank sets RUB 10 bln bond guidance at 7.3–7.4% On June 8, 2021 it was reported that Russia’s Otkritie Financial Corporation (FC) Bank had set the coupon guidance for at least RUB 10 bln of 5-year exchange bonds at 7.3–7.4%. The coupon guidance corresponds to a yield of 7.43–7.54% annually. The issue carries semiannual coupons and a buyback offer in two years. The technical placement was preliminary scheduled for June 10. Otkritie FC Bank, brokerage company Region, Credit Bank of Moscow, Promsvyazbank, Russian Agricultural Bank, and Gazprombank act as the organizers of the placement. Beluga Group sells shares at RUB 2,800 per share to raise RUB 5.6 bln On June 9, 2021 it was stated that one of Russia’s leading alcohol producers and importers Beluga Group had sold 2 mln shares at RUB 2,800 per share to raise RUB 5.6 bln during a secondary public offering (SPO). The sold shares represent approximately 12.7% of the company’s share capital. The selling shareholder Tottenwell Limited is a wholly owned subsidiary of PJSC "Beluga Group. Beluga Group plans to use the funds to accelerate business growth in accordance with its strategy. Beluga Group fell by 4.63% to RUB 2,887 on the Moscow Exchange in the first minutes of trade. Transmashholding guidance for RUB 10 bln bond at 8.05–8.25% On June 8, 2021 it was reported that Russian railway equipment producer Transmashholding had set the guidance for the first coupon of RUB 10 bln 5-year exchange bond at 8.05–8.25% annually. The guidance corresponds to a yield to maturity of 8.21–8.42% annually. The issue carries semiannual coupons. The technical placement was preliminarily scheduled for June 11. VTB Capital, Gazprombank, and Sberbank CIB act as the organizers of the placement. Qiwi appoints Protopopov as CEO to replace Kim On June 8, 2021 it was stated that Russian payment system operator Qiwi had appointed Andrei Protopopov as chief executive officer, effective on June 2 to replace Boris Kim. Chairman of the board of directors Sergei Solonin expressed confidence that Protopopov has the drive and the vision to position Qiwi for continued success. He also added that Protopopov’s appointment had come after a thorough and careful succession planning process, spearheaded by the board and Boris Kim himself. Protopopov has over 12 years of commercial and product managing experience. Prior to the recent appointment, he headed the IT and product department of the company from June 2015 to August 2019 and product management from September 2013 to June 2015. 2 Tatneft wins auction to acquire EcoPET for RUB 6.45 bln On June 8, 2021 it was stated that oil company Tatneft had won an auction to buy EcoPET, Russia’s largest producer of raw materials for polyethylene terephthalate (PET) bottles, for RUB 6.45 bln. The auction’s starting price was set at RUB 3.75 bln. The signing of binding agreements under the deal can take place in the next few weeks. Watchdog allows Mikhailovsky KSM to buy Eurocement On June 8, 2021 it was stated that Russia’s Federal Antimonopoly Service had allowed Mikhailovsky Works of Building Materials (Mikhailovsky KSM) to buy cement producer Eurocement if a number of behavioral conditions are met. Eurocement is the largest cement producer in Russia, and its market share in the Central Federal District, where the acquirer's production assets are located, exceeds 35%. WGC-2 board decides to sell 140 mln shares of Mosenergo On June 8, 2021 it was disclosed that the board of directors of Russia’s Wholesale Generating Company-2 (WGC-2) had decided to sell 140 mln common shares of power utility Mosenergo. WGC-2 will sell off its entire shareholding in Mosenergo. STLC raises exchange bond offering to RUB 7 bln On June 9, 2021 it was reported that Russia's State Transport Leasing Company (STLC) had raised the volume of 15-year exchange bond offering to RUB 7 bln from RUB 5 bln and set the final coupon guidance at 7.85%.