Gide Loyrette Nouel has acted as English and Russian legal counsel to Sistema JSFC ("Sistema"), the largest diversified public financial corporation in Russia and the CIS on a bond issuance by its Indian telecommunications subsidiary, Sistema Shyam TeleServices Ltd. ("SSTL"). The bond issuance closed in January 2012 and resulted in proceeds amounting to INR 12,800,000,000.
The issuance was arranged by Deutsche Bank out of its Indian branch. The transaction was initially structured as a secured loan. However, due to Indian regulatory considerations, the deal was restructured as a bond issuance. The bonds were issued for a term of eight years and are repayable in 2019.
In a press release issued by Sistema , Sergey Savchenko, Chief Financial Officer of SSTL, commented: "It was quite challenging to raise such significant funds with such long tenor under current uncertain regulatory environment in India, but business has to continue and grow…"
Grigory Marinichev, Partner based in Gide's Moscow office, commented: "This was a key financing for Sistema in the Indian telecom market and we were of course delighted to advise on it. This deal follows our successful representation of the Government of India on its sale of shares in NMDC Limited and MOIL Limited and reinforces the strategic importance of the Indian market to our firm."
Tim Theroux, Counsel in Gide's Moscow office, who led the transaction, commented: "Sistema is a flagship client in our Russian finance practice. This was a novel transaction with many complex features and moving parts, and it was a pleasure to work closely with Sistema’s legal and finance teams to complete it."
Notes to Editors
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Gide Loyrette Nouel (Moscow)
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