18. Debt Securities in Issue

At 31 December 2012 included in loan participation notes issued under the MTN programme are notes issued by the Group under 10 billion USD loan participation notes MTN issuance programme launched in 2006. In 2012 the limit for the issues under the programme was extended to 30 billion USD.

In May 2006 the Group issued the first series of notes under this programme in the amount of 0.5 billion USD equivalent to 13.5 billion RUB as at the date of issue. As at 31 December 2012 these notes were accounted for at amortised cost of 15.3 billion RUB (2011: 16.4 billion RUB). The notes mature in May 2013 and have contractual fixed interest rate of 6.5% p.a. As at 31 December 2012 the effective interest rate on the notes was 6.6% p.a. (2011: 6.6% p.a.).

In July 2008 the Group issue the third series of notes under the MTN issuance programme in the amount of 0.5 billion USD equivalent to 11.7 billion RUB as at the date of issue. As at 31 December 2012 these notes were accounted for at amortised cost of 15.7 billion RUB (2011: 16.7 billion RUB). These notes mature in July 2013 and have contractual fixed interest rate of 6.5% p.a. As at 31 December 2012 the effective interest rate on the notes was 6.6% p.a. (2011: 6.6% p.a.).

In July 2010 the Group issued the fourth series of loan participation notes under the MTN issuance programme in the amount of 1 billion USD equivalent to 31.1 billion RUB as at the date of issue. The notes mature in July 2015 and have contractual fixed interest rate of 5.5% p.a. Additional notes of 0.5 billion USD (equivalent to 15.1 billion RUB as at the date of issue) were issued In August 2010 with a premium and form a single series with the fourth series issue. Additional notes have the same interest rate and maturity date. As at 31 December 2012 the notes were accounted for at amortised cost of 46.9 billion RUB (2011: 49.7 billion RUB); the effective interest rate on the notes was 5.4% p.a. (2011: 5.4% p.a.).

In September 2010 the Group issued the fifth series of loan participation notes under the MTN issuance programme in the amount of 1 billion USD equivalent to 31.0 billion RUB as at the date of issue. The notes mature in March 2017 and have contractual fixed interest rate of 5.4% p.a. In October 2010 the Group issued additional notes for 0.25 billion USD (equivalent to 7.6 billion RUB as at the date of issue) with a premium which form a single series with the fifth series issue and have the same interest rate and maturity. As at 31 December 2012 the notes were accounted for at amortised cost of 38.6 billion RUB (2011: 40.9 billion RUB); the effective interest rate was 5.4% p.a. (2011: 5.4% p.a.).

In November 2010 the Group issued the sixth series of loan participation notes under the MTN issuance programme in the amount of 0.4 billion CHF equivalent to 12.6 billion RUB as at the date of issue. The notes mature in November 2014 and have contractual fixed interest rate of 3.5% p.a. As at 31 December 2012 the notes were accounted for at amortised cost of 13.4 billion RUB (2011: 13.7 billion RUB); the effective interest rate was 3.6% p.a. (2011: 3.6% p.a.).

In June 2011 the Group issued the seventh series of loan participation notes under the MTN issuance programme in the amount of 1 billion USD equivalent to 27.9 billion RUB as at the date of issue. The notes mature in June 2021 and have contractual fixed interest rate of 5.7% p.a. As at 31 December 2012 the notes were accounted for at amortised cost of 30.4 billion RUB (2011: 32.2 billion RUB); the effective interest rate on the notes was 5.8% p.a. (2011: 5.8% p.a.).

In February 2012 the Group issued the eighth series of loan participation notes under the MTN issuance programme in the amount of 1 billion USD equivalent to 30.2 billion RUB as at the date of issue. The notes mature in February 2017 and have contractual fixed interest rate of 5.0% p.a. In August 2012 the Group issued additional notes for 0.3 billion USD (equivalent to 9.6 billion RUB as at the date of issue) which form a single series with the eighth series issue and have the same interest rate and maturity. As at 31 December 2012 the notes were accounted for at amortised cost of 38.9 billion RUB; the effective interest rate on the notes was 4.8% p.a.

In February 2012 the Group issued the ninth series of loan participation notes under the MTN issuance programme in the amount of 0.75 billion USD equivalent to 22.7 billion RUB as at the date of issue. The notes mature in February 2022 and have contractual fixed interest rate of 6.1% p.a. In July 2012 the Group issued additional notes for 0.75 billion USD (equivalent to 24.3 billion RUB as at the date of issue) which form a single series with the ninth series issue and have the same interest rate and maturity. As at 31 December 2012 the notes were accounted for at amortised cost of 48.4 billion RUB; the effective interest rate on the notes was 5.6% p.a.

In March 2012 the Group issued the tenth series of loan participation notes under the MTN issuance programme in the amount of 0.41 billion CHF equivalent to 13.2 billion RUB as at the date of issue. The notes mature in September 2015 and have contractual fixed interest rate of 3.1% p.a. As at 31 December 2012 the notes were accounted for at amortised cost of 13.7 billion RUB; the effective interest rate on the notes was 3.2% p.a.

In June 2012 the Group issued the eleventh series of loan participation notes under the MTN issuance programme in the amount of 1 billion USD equivalent to 32.8 billion RUB as at the date of issue. The notes mature in June 2019 and have contractual fixed interest rate of 5.2% p.a. As at 31 December 2012 the notes were accounted for at amortised cost of 30.3 billion RUB; the effective interest rate on the notes was 5.3% p.a.

Promissory notes are interest-bearing or discount securities issued by the Group. They are denominated in Russian roubles, US Dollars and Euro and have maturity dates from two weeks to three years (2011: from two weeks to three years). Interest or discount rates on promissory notes issued by the Group vary from 4.7% to 8.3% p.a. (2011: from 0.1% to 6.5% p.a.). Promissory notes are freely tradable on the Russian financial market.

Savings certificates are interest-bearing securities issued by the Group. They are denominated in Russian Roubles and have maturity dates from three months to three years (2011: from three months to three years). Interest rates on these securities vary from 0.01% to 10.5% p.a. (2011: from 4.1% to 7.2% p.a.).

In November 2012 the Group launched Euro-Commercial Paper programme (ECP programme) for the total amount of issues limited by 3 billion USD. The notes issued under ECP programme will have maturity of one year or less. As at 31 December 2012 the Group has launched three issues under the programme for the total amount of 0.5 billion USD equivalent to 16.3 billion RUB as at the date of issue. As at 31 December 2012 these notes were accounted for at amortised cost of 16.1 billion RUB. The notes have maturity dates from November 2013 to December 2013; floating nominal discount rates for the two issues are 12 months LIBOR + 0.9% p.a., for the third issue — fixed discount rate of 1.6% p.a.; effective interest rates vary from 1.6%p.a. to 1.8% p.a.

Structured notes represent interest-bearing and non-interest-bearing securities issued by the Group. They are denominated in Russian Roubles and have maturity dates from “on demand” to June 2021 (2011: from “on demand” to August 2018). Interest rates on these securities vary from 0.0% to 13.3% p.a. (2011: from 0.0% to 17% p.a.).

Bonds issued represent interest-bearing securities issued by the Group. They are denominated in Turkish Lyra, Belorussian roubles, US dollars, Euro, Ukranian Hryvnia and have maturity dates from “on demand” to September 2023 (2011: from “on demand” to 2019). Interest rates on these securities vary from 0.0% to 8.0% p.a. (2011: from 5.5% to 12.8% p.a.).

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