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 2021, 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 2021, Holding, %

MegaFon shareholders

Dividends

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 updated in August 2021. 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.

Bonds

Five issues of PJSC MegaFon bonds (series BО-001R-03, BО-001R-05, BО-001R-06, BО-002R-01 and BО-002R-02) were outstanding at the end of 2021.

RUB
55
billion
total volume of MegaFon outstanding bonds as at end-2021
  1. LLC USM Telecom is the sole shareholder of LLC AF Telecom Holding.

Credit ratings

As at 31 December 2021, MegaFon’s solid current credit rating profile allowed it to raise funds at the most attractive terms available in the market.

During 2021, as borrowing rates surged, MegaFon’s bond yields also increased.

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
BO-001R-03
BO-001R-05
BO-001R-06
BO-002R-01
BO-002R-02
AA(RU) 09/10/2017
04/02/2019
18/03/2019
18/03/2019
15/04/2019
Open

In 2022, following the downgrade of Russia’s sovereign rating, rating agencies S&P Global Ratings and Moody’s first downgraded and then withdrew MegaFon’s longterm credit ratings.

Investor Relations

Providing relevant and timely information to stakeholders is a top priority for MegaFon. In line with its disclosure practices, during 2021 MegaFon continued 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: