MKB co-arranged debut issue of social exchange-traded bonds by MTS


Credit Bank of Moscow (MKB) co-arranged RUB 4.5 billion three-year social exchange-traded bonds series 001Р-18 for MTS. The issue pays 6.50% p.a. semi-annually until maturity.

The bonds' par value is 1000 roubles and the placement price was 100% of par.

The offering took place on Moscow Exchange within four business days from 26 to 31 March 2021. The coupon rate was set immediately before the launch of the offering at 6.50% per annum, which corresponds to a yield to maturity of 6.61% per annum.

The bonds are included in the social bonds segment of Moscow Exchange's sustainable development sector and in its first level list. The issue is rated ruAAA by Expert RA. The other arrangers were VTB, Gazprombank, MTS Bank, Region BС and Sberbank.

In order to tap retail demand, digital channels were used, including exposure on the arrangers' websites and mobile applications. Almost three thousand orders were received from banks, institutional customers and a prevailing number of retail investors.

The proceeds will be applied to finance landline Internet connections for 4,995 socially important objects – schools, healthcare institutions, fire stations, police precincts, state and local authorities, election commission offices and military registration and enlistment offices – in Amur, Kaliningrad, Kemerovo, Leningrad, Tambov, Tver, Yaroslavl Regions and Moscow.

The issuer will annually report on the utilisation of proceeds. The bondholders may require redemption if the proceeds are utilised for any other purposes.