SSEECCUURRIIITTIIIEESS MMAARRKKEETT NNEEWWSSLLEETTTTEERR weekly Presented by: VTB Bank, Custody June 3, 2021 Issue No. 2021/20 Market News Finance Ministry places RUB 33.4 bln OFZ bonds On June 2, 2021 Russia’s Finance Ministry placed RUB 33.448 bln of OFZ 26234 government bonds with a fixed coupon maturing in July 2025 at an auction. The cut-off price amounted to 92.6% and the weighted average price stood at 92.6653%. The weighted average yield amounted to 6.66% and the cut-off yield amounted to 6.68%. Demand totaled RUB 51.527 bln. Moscow government to offer RUB 35 bln 5-year bonds on June 10 On June 3, 2021 it was stated that the Moscow government plans to hold an auction for RUB 35 bln 5-year bonds on the Moscow Exchange on June 10. The bonds will carry semiannual coupons. The coupon rate is 7.2%. The yield guidance will be announced later. Company News RusHydro board approves extension of dividend policy for 6 years On May 27, 2021 a top executive of Russian hydropower giant RusHydro said during a conference call that the board of directors of the company had approved extension of its dividend policy for the next six years. In accordance with a dividend policy approved in April 2019, RusHydro pays 50% of net profit calculated under International Financial Reporting Standards (IFRS) in dividends. For 2020, RusHydro expects a record high dividend payment of RUB 23.3 bln. Transmashholding eyes bids for RUB 10 bln bonds on June 8 O May 28, 2021 it was reported that Russian railway equipment producer Transmashholding plans to collect bids for RUB 10 bln 5-year exchange bonds on June 8. The coupon guidance will be announced later. The technical placement is preliminarily scheduled for June 11. VTB Capital, Gazprombank, and Sberbank CIB will act as organizers. Inventive Retail Group can hold IPO in 4 years On May 31, 2021 President of Inventive Retail Group managing stores under the brands re:Store, Samsung and Nike, Tikhon Smykov said that the group can hold an initial public offering (IPO) in four years. Sales of the group rose 11% to RUB 86 bln with value-added tax in 2020. Globaltruck prolongs buyback program till May 31, 2022 On May 31, 2021 it was stated that Russian truck carrier Globaltruck had extended its buyback program for another year, until the end of May 2022 or until the buyback quantity or volume limit is reached. All the conditions of the program held from November 11, 2019 through May 31, 2021 are kept. The bought back shares will be used for general corporate purposes including incentives for the staff. The program will envisage buying back up to 5% of the issued capital. The previous RUB 386 mln buyback program was in force from November 11, 2019 through May 31, 2021. Under the program, the company acquired its shares at no more than RUB 132 per security. 1 VTB Group raises stake in St Pete Exchange to 10.77% from 5% On June 1, 2021 it was disclosed by reporters that Russia’s VTB Group had increased its stake in the Saint Petersburg Exchange to 10.77% from 5%. In April VTB acquired a 5% stake from the bourse’s core owner Non-profit Partnership for the Development of the RTS Financial Market (NP RTS Association). Sistema holds 73.1% in Segezha Group after overallotment option On June 1, 2021 it was stated that the stake of Russian multi-industry holding Sistema in pulp and paper holding Segezha Group had amounted to 73.1% after executing an overallotment option. The deal was conducted by stabilization manager Renaissance Securities (Cyprus) Limited following Segezha’s initial public offering (IPO) and listing on the Moscow Exchange. Sistema received around RUB 800 mln in the option. In April, Segezha held an IPO on the Moscow Exchange and raised RUB 30 bln by placing 3.75 bln new shares at RUB 8 apiece. Otkritie FC Bank to offer RUB 10 bln 5-year bonds on June 8 On June 1, 2021 it was reported that Russia’s Otkritie Financial Corporation (FC) Bank plans to offer at least RUB 10 bln of 5-year exchange bonds on June 8. 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. Novatek extends buyback program till June 7, 2022 On June 1, 2021 it was stated that the management board of Russian independent gas producer Novatek had decided to prolong the company’s buyback program for another year, until June 7, 2022, on previous conditions. The board of directors approved a USD 600 mln buyback program in June 2012 and prolonged it several times. In June 2020, the program was extended until June 7, 2021. STLC to offer RUB 5 bln bonds on June 10 On June 1, 2021 it was reported that Russia's State Transport Leasing Company (STLC) plans to collect investors' bids for RUB 5 bln of 15-year exchange bonds on June 10. The issue will carry quarterly coupons and a 3-year buyback offer. Technical placement will be scheduled later. Brokerage company Region, Otkritie Financial Corporation Bank, VTB Capital, Gazprombank, Credit Bank of Moscow, Russian Agricultural Bank and Sovcombank are the placement organizers. Transneft waits for ministry’s document to change dividend policy On June 1, 2021 a top manager of Russian oil pipeline monopoly Transneft said in a conference call that the company is waiting for the Finance Ministry to release a special document in order to change its dividend policy officially, but the company had already been paying half of its net profit calculated under IFRS (International Financial Reporting Standards) in dividends from this year. Sibur shareholders approve issue of 384.4 mln shares for TAIF On June 1, 2021 it was disclosed that the shareholders of Russian petrochemical holding Sibur had approved issuance of 384.4 mln additional shares with the face value of RUB 10 each in favor of shareholders of TAIF. Sibur and TAIF are merging their petrochemical businesses on the basis of Sibur Holding. The TAIF shareholders will swap a controlling stake in the group’s petrochemical and energy companies for 15% in the new company, and the combined company will be able to purchase the remaining stake in TAIF subsequently. Ozon to rebrand Oney Bank into Ozon Bank On June 2, 2021 Vice President for Digital Financial Services of Ozon Vahe Ovasapyan said that the marketplace will rename the earlier acquired bank, Oney Bank, into Ozon Bank, which will be Russia’s first e-commerce bank. The spokesperson also said that the relevant documents had been already submitted to the central bank. Ozon fully acquired Oney Bank from Sovcombank for some RUB 615 mln. Rosatom to offer RUB 10 bln bonds in coming weeks On June 3, 2021 deputy CEO for economy and finances of Russian nuclear power corporation Rosatom Ilya Rebrov said at the St. Petersburg International Economic Forum that the company plans to offer RUB 10 bln bonds in the nearest weeks. The program of Russian bonds with a maximum maturity of 10 years was registered on May 31, 2021. According to Rebrov, the mentioned first issue of RUB 10 bln bonds is tied to specialized indicators, and the attracted funds will go to the corresponding target projects. 2 Severstal closes acquisition of 20% in Nizhne-Volzhsky Pipe Plant On June 3, 2021 CEO of Russian steel producer Severstal Alexander Shevelyov said on the sidelines of the St. Petersburg International Economic Forum that the company had closed a deal to buy a 20% stake in the Nizhne-Volzhsky pipe plant, located in the Volgograd Region. Shevelyov did not disclose the amount of the deal. Severstal received clearance for the acquisition from the Federal Antimonopoly Service at the end of April. Nordgold to list shares on London Stock Exchange again On June 3, 2021 it was stated that Gold mining company Nordgold, controlled by Russian businessman Alexei Mordashov, plans to list shares on the London Stock Exchange (LSE) and had filed a bid for access of its shares to trading on the Moscow Exchange. Nordgold placed its shares on the LSE in January 2012, but in early 2017 announced its intention to delist from the bourse. The company’s free-float will amount to at least 25% after the placement. Dividends/coupons Alfa-Bank may pay RUB 9 bln in dividends for 2020 On May 27, 2021 it was stated that the board of directors of Russia’s Alfa-Bank had recommended paying RUB 151.04 per common share, or a total of RUB 9 bln, in dividends for 2020. The bank’s net profit amounted to RUB 164 bln in the year, as calculated under Russian Accounting Standards (RAS). FGC UES board recommends RUB 0.0161 per share in dividends for 2020 On May 27, 2021 it was disclosed that the board of directors of Russia’s Federal Grid Company of Unified Energy Systems (FGC UES) had recommended paying RUB 0.0161 per common share in dividends for 2020. FGC UES’s policy envisages paying in dividends 50% of the net profit calculated under Russian Accounting Standards (RAS) or International Financial Reporting Standards (IFRS). Rosseti can pay 2.45 kopecks per common share in 2020 dividends On May 27, 2021 it was stated that the board of directors of Russian power grid holding Rosseti had recommended paying 2.45 kopecks per common share and 5.88 kopecks per preferred share in final 2020 dividends.