OREANDA-NEWS. Open Joint Stock Company MegaFon (“MegaFon” or “Company”) (LSE: MFON), Russia's leading telecommunications operator, announces the opening of subscription book for its series BO-04 exchange bonds (“Ruble bonds”) admitted to trading on the Moscow Stock Exchange June 27, 2013 under the identification number 4B02-04-00822-J.

The total principal amount of Ruble bonds being offered is up to 15 billion rubles. The Ruble bonds will have a term of 3,640 days following placement, subject to a put option exercisable by the bondholders on the first anniversary of the placement date. The marketing coupon range is set between 9.8% and 10.00% per annum, subject to final determination via the bookbuilding exercise. Proceeds from the Ruble bonds will be used for general corporate purposes, including the refinancing of the Company's existing liabilities.

The books are expected to close at 16:00 Moscow time on May [15], or earlier at the Company's discretion. Placement on the Moscow Stock Exchange in the unlisted securities section is expected to occur on or about May 20, 2014.

Gazprombank, Raiffeisenbank and UniCredit Bank are acting as the lead arrangers of the Ruble bonds issue. Gazprombank is acting as the placement agent.