At the beginning of 2016, one issue of rouble-denominated exchange-traded bonds (series BO-05) and three bond issues of MegaFon Finance LLC, a 100% subsidiary of PJSC MegaFon (series 05, 06 and 07) were outstanding.
In April 2016, MegaFon registered with the Moscow Exchange an exchange-traded bond programme for the issuance of bonds up to a total principal amount of RUB 80bn, with a maximum maturity of 30 years. Under this bond programme, MegaFon placed two issues of exchange-traded bonds in 2016, as follows.
In May 2016, MegaFon placed 10 million exchange-traded bonds series BO-001R-01, each with a principal amount of RUB 1,000 and maturing on the 1,092nd day from the placement date. The total issue of RUB 10bn bore a coupon rate of 9.95% p.a., and becomes due in May 2019.
In June 2016, PJSC MegaFon placed a further 10 million exchange-traded bonds series BO-001R-02, each with a principal amount of RUB 1,000 and maturing on the 3,640th day from the placement start date. The interest rate on the total issue of RUB 10bn was fixed at 9.9% p.a. for the first five years. After that, the coupon rate for the next two years will be 2-year OFZ yield plus 100 basis points. For the final three years the coupon rate will be 3-year OFZ yield plus 100 basis points. MegaFon has a repurchase option on the bonds exercisable on the fifth and the seventh anniversary of their placement. The final maturity date for the bonds is May 2026.
In 2016, MegaFon Finance LLC repurchased the bulk of its series 05 bonds, which were outstanding as of the beginning of 2016, as a result of two put options exercised by their holders. At the beginning of 2016, 1,750,704 bonds of MegaFon Finance LLC from series 05 were outstanding. In April 2016, at the behest of their holders, MegaFon Finance LLC purchased 1,636,213 series 05 bonds at 100% of principal, for a total purchase price of RUB 1.64bn. In October 2016, again at the behest of the holders, MegaFon Finance LLC repurchased 114,424 series 05 bonds at 100% of principal, for a total purchase price of RUB 114m. Following these repurchases, 67 series 05 bonds remain outstanding subject to a f urther put option exercisable in April 2017. The final maturity date of the series 05 bonds is September 2022.
During 2016, in line with general trends in the Russian market for roubledenominated bonds, the average coupon rate on MegaFon’s bonds declined from double digits at the beginning of the year to below 10%. These changes reflected the lower cost of debt financing after the CBR key rate was reduced in June and September 2016, as well as much higher liquidity.
|Issuer||MegaFon Finance LLC||MegaFon Finance LLC||MegaFon Finance LLC||PJSC MegaFon||PJSC MegaFon||PJSC MegaFon|
|Issue number||Series 051||Series 06||Series 07||Series BO-05 exchange-traded bonds||Series BО-001R-01 exchange-traded bonds||Series BО-001R-02 exchange-traded bonds|
|Coupon, % per annum||Coupons 1–4 – 8.05%
Coupons 5–7 – 9.85%
Coupons 8–9 – 0.1%
|Coupons 1–10 – 8.00%||Coupons 1–10 – 8.00%||Coupons 1–4 – 11.4%||9.95%||9.90%|
|Coupon period||182 days||182 days||182 days||182 days||182 days||91 days|
|Issue size, RUB||10,000,000,000||10,000,000,000||10,000,000,000||15,000,000,000||10,000,000,000||10,000,000,000|
|Placement date||11 October 2012||13 March 2013||13 March 2013||23 October 2015||12 May 2016||10 June 2016|
|Maturity date:||29 September 2022||01 March 2023||01 March 2023||19 May 2015||09 May 2019||29 May 2026|
|Earliest put option date||07 April 2016||07 March 2018||07 March 2018||repaid in full in May 2015||—||—|
|Call option date||—||—||—||—||—||June 2021
|State registration number||4-05-36027-R||4-06-36027-R||4-07-36027-R||4B02-04-00822-J||4В02-01-00822-J- 001Р||4В02-02-00822-J- 001Р|