Rostelecom — Capital/Financing Update 2017

Nov 14, 2017

ROSTELECOM PJSC (RKMD)

14-Nov-2017 / 15:48 CET/CEST Dissemination of a RegulatoryAnnouncement, transmitted by EQS Group. The issuer is solely responsible for the content of this announcement.

ROSTELECOMANNOUNCES RUB 10 BLN BOND PLACEMENT

Coupon rate set at 7.7% per annum

Moscow, Russia - November 14, 2017 - Rostelecom PJSC (MOEX: RTKM, RTKMP; OTCQX: ROSYY), Russia's national telecommunications operator, today announces the placement of its 001P-03R [1] series bonds at a coupon rate of 7.7% per annum. The bonds, with a total nominal value of RUB 10 billion, have a five-year put option from placement and a maturity of 10 years with a nominal value of RUB 1,000 each.

The 001P-03R series Rostelecom bonds will be placed on the Moscow Exchange (MOEX) on November 21, 2017.

The funds from the bonds placement are expected to be used for refinancing purposes.

The lead arrangers of the offering are VTB Capital, Sberbank CIB, Gazprombank.

Rostelecom(www.rostelecom.ru) is one of the largest national telecommunications operators inRussia and Europe. TheCompany operates in all segments of the telecommunications market and covers millions of households inRussia.

Rostelecomis an undisputable leader of the broadband and pay-TV markets inRussiawith over 12.7 million fixed-line broadband subscribers and over 9.7 million pay-TV subscribers, over 4.7 million of which are subscribed toRostelecom's IPTV services.

In the nine months of 2017, theGroup generatedRUB221.2 billion of revenues, RUB71.2 billion of OIBDA(32.2%of revenue) andRUB9.9 billion of net income.

TheGroup is a market leader in providing telecommunications services to government bodies and corporates of all levels.

Rostelecomis an important innovator that provides solutions in the field of E-Government, cloud computing, healthcare, education, security and housing &utility services.

TheGroup's stable financial position confirmed by its credit ratings. Rostelecomwas assigned 'BBB-' and 'BB+' international credit ratings by FitchRatings and Standard&Poor's respectively, andAA(RU) byACRA.

* * * Certain statements in this press release are forward-looking statements within the meaning of theU.S. federal securities laws and intended to be covered by the safe harbours created thereby.

Those forward-looking statements include, but are not limited to:

• Assessment of Rostelecom's PJSC(theCompany) future operating and financial results as well as forecasts of the present value of future cash flows and related factors;
• TheCompany's plans to take ownership stakes in other organisations;
• theCompany's anticipated capital expenditures and plans to construct and modernize its network;
• theCompany's expectations as to the growth in demand for its services, plans relating to the expansion of the range of its services and their pricing;
• theCompany's plans with respect to improving its corporate governance practices;
• theCompany's expectations as to its position in the telecommunications market and forecasts on the development of the market segments withinwhich theCompany operates;
• economic outlook and industry trends;
• theCompany's expectations as to the regulation of theRussian telecommunications industry and assessment of impact of regulatory initiatives on theCompany's activity;
• other statements regarding matters that are not historical facts.

Such forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially fromthose expressed or implied by these forward-looking statements. These risks, uncertainties and other factors include:

• risks relating to changes in political, economic and social conditions inRussia as well as changes in global economic conditions;
• risks relating toRussian legislation, regulation and taxation, including laws, regulations, decrees and decisions governing theRussian telecommunications industry, securities industry as well as currency and exchange controls relating toRussian entities and their official interpretation by regulatory bodies;
• risks relating to theCompany, including the achievement of the anticipated results, levels of profitability and growth, ability to create and meet demand for theCompany's services including their promotions, and the ability of theCompany to remain competitive in a liberalized telecommunications market;
• technological risks associatedwith the functioning and development of the telecommunications infrastructure, technological innovations as well as the convergence of technologies;
• other risks and uncertainties. For a more detailed discussion of these and other factors, see theCompany'sAnnualReport and theCompany's other public filings.

Many of these factors are beyond theCompany's ability to control or predict. Given these and other uncertainties, readers are cautioned not to place undue reliance on any of the forward-looking statements contained herein or otherwise. TheCompany does not undertake any obligation to release publicly any revisions to these forward-looking statements (which are made as of the date hereof) to reflect events or circumstances upon the annual report publication or to reflect the occurrence of unanticipated events, except as may be required under applicable laws.

ISIN: US7785291078 Category Code:IOD TIDM: RKMD LEICode: 2534001D752JPNM0H170 Sequence No.: 4846

End ofAnnouncementEQS News Service