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Presented by: VTB Bank, Custody

January 14, 2021 Issue No. 2021/01

Market News

Finance Ministry places RUB 31.16 bln of OFZ bonds On January 13, 2020 it was reported that Russia’s Finance Ministry had placed RUB 31.159 bln worth of OFZ government bonds of two series at an auctions. At the first auction, the ministry placed RUB 10.15 bln worth of OFZ 26236 government bonds with a fixed coupon maturing in May 2028. The cut-off and the weighted average yields amounted to 5.91% annually. Demand totaled RUB 15.301 bln. At the second auction, the ministry placed RUB 21.009 bln worth of OFZ 52003 government bonds maturing in July 2030. The cut-off yield was 2.41% annually and the weighted average yield was 2.39% annually. Demand totaled RUB 33.571 bln.

Company News

Russia's Sovcombank buys 100% in Oney Bank On December 31, 2020 it was stated that Russia's Sovcombank had purchased 100% in Oney Bank for an undisclosed sum. After the acquisition, Oney Bank will start rebranding.

NNK-Oil gets 9% in 's unit RN-Sakhalinmorneftegaz On December 31, 2020 it was disclosed by reporters that the company NNK-Oil of Eduard Khudainatov had acquired a 9% interest in Rosneft's affiliate RN-Sakhalinmorneftegaz. On December 30, NNK-Oil became an owner of 9% in another Rosneft unit, RN-Severnaya Neft.

ER-Telecom CEO Kuzyev raises stake in operator to 87.29% On December 31, 2020 it was stated that PFIG Overseas Invest Holding Ltd., acting in the interests of Andrei Kuzyaev, president of ER-Telecom, one of Russia’s largest Internet and pay TV providers, had acquired 16.3% of ER-Telecom Holding Ltd., the provider’s parent company. Kuzyaev said in the statement that the deal is in line with the strategic goal of creating a leading independent telecom operator in Russia. As a result, the share of PFIG Overseas Invest Holding Ltd. in ER-Telecom increased to 87.29% from 70.99%. The telecom holding’s management holds the remaining 13%. The shares were acquired from Dehus Dolmen Nominees Ltd., acting in the interests of investment fund Baring Vostok, and Enforta B.V.

Oleg Tinkov to reduce voting stake in TCS Group to 35% from 84% On January 07, 2021 it was stated that the stake of voting shares of Russian businessman in TCS Group, which includes Tinkoff Bank, will fall to 35% from 84% after changes to the capital structure. TCS Group Holding has received instructions to convert all 69.9 mln class B shares owned by The Rigi Trust and Bernina Trust affiliated with Oleg Tinkov. The class B shares are expected to be converted into class A shares from January 7, 2021. As a result of the conversion, Oleg Tinkov’s voting rights in the group will fall from 84% to 35%. The number of outstanding global depositary receipts (GDRs) will remain unchanged at 129.4 mln units.

VTB sells off 25% stake in chemicals producer Korund Cyan On January 11, 2021 it was disclosed that Russian banking group VTB sold off its 25% stake in Korund Cyan, a producer of sodium cyanide for gold recovery, polyurethane foam and other chemicals, to reduce the stake to 0%. The transaction took place on December 24, 2020.

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Gazprombank’s unit acquires 14.48% in ASNA pharmacy chain On January 12, 2021 it was stated that a subsidiary of Gazprombank had acquired a 14.48% stake in pharmacy chain ASNA, which unites more than 10,000 pharmacies in Russia. In mid-December 2020, Gazprombank signed a binding agreement to acquire a stake in ASNA. The bank said then that it planned to get a minority stake in the company and to provide shareholder financing to it. ASNA’s management, led by CEO and founder Alexander Shishkin, will remain in charge of operating management, while Gazprombank will be have a significant influence on strategic decisions.

Dividends/coupons Sovcombank board recommends paying RUB 5.5 bln in dividends On January 12, 2021 it was stated that the supervisory board of Russia’s Sovcombank had recommended paying RUB 0.28 per ordinary share, or a total of RUB 5.5 bln in dividends using undistributed profits for previous years. The shareholders of the bank will consider the recommendation at an extraordinary general meeting on February 3. Record date for the dividends is February 14.

Rosgosstrakh to pay RUB 12 bln in dividends from 2018–2019 profits On January 13, 2021 it was stated that the shareholders of Russian insurer Rosgosstrakh had approved paying over RUB 12.2 bln in dividends using the undisbursed profit for 2018–2019. The minutes of the December 30, 2020 meeting that happened in absentia were signed on January 12. In January–September 2020, the company’s collection of premiums grew by 9% on the year to RUB 63.8 bln, with the pretax profit standing at RUB 8.6 bln in the period and the net profit at RUB 6.5 bln. Otkritie Financial Corporation (FC) Bank owns 99.64% in Rosgosstrakh.

Eurobonds / DRs Credit Bank of sets Eurobond yield at 3.1% On January 13, 2021 it was reported that had set the yield for EUR 600 mln Eurobonds maturing in January 2026 at 3.1% annually. Investor demand for the Eurobonds exceeded EUR 1.1 bln. Starting from Monday, the bank held a series of calls with investors devoted to the possible placement. Citi, J.P. Morgan, Societe Generale, brokerage company Region, Emirates NBD Capital, Renaissance Capital, Sova Capital, and Sovcombank will act as organizers.

Sovcombank plans to place social Eurobonds in USD On January 13, 2021 it was stated that Sovcombank plans to offer social Eurobonds denominated in the U.S. dollars. The bank plans to start a series of calls with potential investors. Depending on market conditions, Sovcombank will sell four or five-year Eurobonds. J.P. Morgan, Emirates NBD Capital, Gazprombank, HSBC, ING, Renaissance Capital, Sberbank CIB, Sova Capital, UniCredit and VTB Capital are the organizers.

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, "”, ““ newspapers, and others.

For more information kindly contact: Anna Enfiandzhiants Evgenia Makarova Julia Dombrovskaya T +7 (495) 783 13 91 T +7 (495) 783 13 64 T +7 (495) 783 13 15 F +7 (495) 783 13 89 F +7 (495) 783 13 89 F +7 (495) 783 13 20 E [email protected] E [email protected] E [email protected] This document has been prepared exclusively for internal use of VTB Bank (PJSC) customers. The information should not be further distributed or duplicated in whole or in part by any means without the prior written consent of VTB Bank (PJSC). The information contained herein has been prepared on the basis of information which is either publicly available or obtained from a source which VTB Bank (PJSC) believes to be reliable at the time of publication. Information provided herein may be a summary or translation. The content of the material contained herein is subject to change without notice, and such changes could affect its validity. VTB Bank (PJSC) is not obligated to update the material in light of future events. Furthermore, VTB Bank (PJSC) does not warrant, expressly or implicitly, its veracity, accuracy or completeness. VTB Bank (PJSC) and its affiliates accept no liability whatsoever for any use of this communication or any action taken based on or arising from the material contained herein. Additional information may be available upon request. The material in this communication is for information purposes only. Therefore, this communication should not be interpreted as investment, tax or legal advice by VTB Bank (PJSC) or any of its officers, directors, employees or agents and customers should consult with appropriate professional advisers for these specific matters. Nothing expressed or implied herein is intended to create any obligation of VTB Bank (PJSC) and/or impose any liability on VTB Bank (PJSC) and/or create legal relations between VTB Bank (PJSC) and VTB Bank (PJSC) customers.

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