Washington, D.C. 20549


Report of Foreign Issuer
September 2, 2016


Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934


Commission file number:  333-12032


Mobile TeleSystems PJSC

(Exact name of Registrant as specified in its charter)

Russian Federation

(Jurisdiction of incorporation or organization)


4, Marksistskaya Street
Moscow 109147
Russian Federation

(Address of principal executive offices)


Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.


Form 20-F   x   Form 40-F   o


Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.


Yes   o   No   x








MTS PJSC Successfully Placed RUB 10 bln Exchange-traded Series 2 Bonds


September 2, 2016


Moscow, Russian Federation — Mobile TeleSystems PJSC (“MTS” or the “Company” — NYSE: MBT; MOEX: MTSS), the leading telecommunications provider in Russia, announces its successful return to the bond market after a three-year absence. On September 2, 2016, MTS issued a RUB 10 bln exchange-traded Series 2 bonds with a maturity of 15 years and a two-year put option on Moscow Interbank Currency Exchange (MICEX). Book building took place on August 25. The nominal price of the bonds is set at RUB 1,000 with the price of placement — 100% of nominal value.


The initial range for the first coupon was set at 9.60-9.75%. During the book building exercise, the rate fell twice to a range of 9.40-9.50%. Due to strong demand for the issue among investors, MTS was able to set the rate for the first coupon at 9.40%.


This placement was three times oversubscribed with more than 60 applications from investors.


This placement was a success for both MTS and for the bond market in general: among corporate placements with similar maturities, this placement boasts the lowest coupon since the beginning of 2014 and an unprecedented low spread of 60 basis points compared to federal loan bonds (OFZ). Overall, this is one of the lowest ruble-based coupon rates among corporate borrowers on the local market in recent years and demonstrates the high credit quality of the company among investors and strong balance sheet of MTS.


MTS intends to actively use the local bond market in the future for the purposes of optimization of its current debt profile, financing its investment program and for other corporate reasons. So far in 2016, MTS has retired, repaid or repurchased debt instruments in excess of RUB 39.9 bln.


Lead arrangers of bond are Gazprombank and Sberbank CIB. Sberbank CIB is the placement agent.




For further information, please contact in Moscow:


Joshua B. Tulgan

Director, Department of Corporate Finance and Investor Relations

Mobile TeleSystems PJSC

Tel: +7 495 223 2025



Learn more about MTS. Visit the official blog of the Investor Relations Department at


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Mobile TeleSystems PJSC (“MTS” - NYSE:MBT; MOEX:MTSS) is the leading telecommunications group in Russia, Central and Eastern Europe.  We provide wireless Internet access and fixed voice, broadband and pay-TV to over 100




million customers who value high quality of service at a competitive price. Our wireless and fixed-line networks deliver best-in-class speeds and coverage throughout Russia, Ukraine, Armenia, Turkmenistan and Belarus. To keep pace with evolving customer demand, we continue to grow through innovative products, investments in our market-leading retail platform, mobile payment services, e-commerce and IT solutions. For more information, please visit:


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Some of the information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of MTS, as defined in the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. You can identify forward looking statements by terms such as “expect,” “believe,” “anticipate,” “estimate,” “intend,” “will,” “could,” “may” or “might,” and the negative of such terms or other similar expressions.  We wish to caution you that these statements are only predictions and that actual events or results may differ materially. We do not undertake or intend to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. We refer you to the documents MTS files from time to time with the U.S. Securities and Exchange Commission, specifically the Company’s most recent Form 20-F. These documents contain and identify important factors, including those contained in the section captioned “Risk Factors” that could cause the actual results to differ materially from those contained in our projections or forward-looking statements, including, among others, the severity and duration of current economic and financial conditions, including volatility in interest and exchange rates, commodity and equity prices and the value of financial assets; the impact of Russian, U.S. and other foreign government programs to restore liquidity and stimulate national and global economies, our ability to maintain our current credit rating and the impact on our funding costs and competitive position if we do not do so, strategic actions, including acquisitions and dispositions and our success in integrating acquired businesses, potential fluctuations in quarterly results, our competitive environment, dependence on new service development and tariff structures, rapid technological and market change, acquisition strategy, risks associated with telecommunications infrastructure, governmental regulation of the telecommunications industries and other risks associated with operating in Russia and the CIS, volatility of stock price, financial risk management and future growth subject to risks.


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Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.













/s/ Andrei Dubovskov




Andrei Dubovskov









Date:   September 2, 2016