Securities

Shareholders’ Equity

PJSC MegaFon’s charter capital amounts to RUB 62 million, consisting of 620 million ordinary registered uncertificated shares with a par value of RUB 0.1 each. The Company is authorised to issue 100 billion additional ordinary shares. All issues of ordinary registered uncertificated shares have been combined into one issue with the state number 1-03-00822-J. MegaFon has no preferred shares. The Government does not hold any stake in MegaFon’s charter capital.

As at 31 December 2020, PJSC MegaFon’s shareholders were LLC AF Telecom Holding (50% interest) and LLC USM Telecom1 (50% interest) holding in aggregate 100% of the Company’s charter capital.

MegaFon shareholders as at 31 December 2020

Dividends

Any payment of dividends (and the amount of dividends payable) must be approved by the General Meeting of Shareholders upon recommendation of the Board of Directors.

PJSC MegaFon’s Dividend Policy was approved in May 2017. The Dividend Policy sets out the principles to be followed by the Board of Directors when making decisions on recommended dividend amounts to be approved by the General Meeting of Shareholders.

On 8 June 2020, the annual General Meeting of Shareholders resolved not to distribute a dividend for FY2019. LLC USM Telecom is the sole shareholder of LLC AF Telecom Holding.

The specific terms of PJSC MegaFon’s Dividend Policy

Dividend payments in 2016–2020
Reporting period 2016 2017 2018 2019 2020
Total dividends paid in the calendar year, RUB bn 50.0 20.0 0.0 0.0 0.0
DPS, RUB 80.63 32.25 0.0 0.0 0.0

Bonds

Seven issues of PJSC MegaFon bonds (series BО-001R-02, BО-001R-03, BО-001R-04, BО-001R-05, BО-001R-06, BО-002R-01 and BО-002R-02) were outstanding at the end of 20202.

RUB 85 billion
total volume of MegaFon outstanding bonds as at end-2020

Credit ratings

Credit rating Value Outlook Rating/review date
S&P Global Ratings
Long-term foreign currency rating BB+ Stable 18.12.2019
Long-term local currency rating BB+ Stable 18.12.2019
Moody’s
Long-term credit rating Ba1 Stable 11.09.2018
ACRA
Issuer: PJSC MegaFon AA(RU) Stable 21.09.2017
PJSC MegaFon bond issues, series AA(RU)  
BO-001R-03 09.10.2017
BO-001R-04 19.02.2018
BO-001R-05 04.02.2019
BO-001R-06 18.03.2019
BO-002R-01 18.03.2019
BO-002R-02 15.04.2019

MegaFon’s solid current credit rating profile allows it to raise funds at the most attractive terms available in the market.

In March 2020, as global borrowing rates surged, MegaFon’s bond yields also increased, retreating later over 2020 in pace with the relevant debt market dynamics reflecting, among other things, cuts in the CBR key rate.

Investor Relations

Providing relevant and timely information to stakeholders is a top priority for MegaFon. In line with its disclosure practices, MegaFon continues to make quarterly announcements of the Company’s operating and financial results, as well as publishing annual reports. MegaFon maintains an open line of communication with investors and participates in various investment and industry conferences.

To ensure data accessibility, MegaFon publishes its Corporate Action Notices:

Investor materials, including presentations and reports

  1. LLC USM Telecom is the sole shareholder of LLC AF Telecom Holding.
  2. In February 2020, PJSC MegaFon completed the previously scheduled redemption of its RUB 20bn exchange bond (series BО-001R-04).
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