MTS shelves bond issue

Mobile operator Mobile TeleSystems (MTS) is holding back on its planned Eurobond issue due to currency market conditions, according to Reuters.
The Moscow company had launched a roadshow earlier this week to promote a proposed 10-year U.S. dollar…

Mobile operator Mobile TeleSystems (MTS) is holding back on its planned Eurobond issue due to currency market conditions, according to Reuters.

The Moscow company had launched a roadshow earlier this week to promote a proposed 10-year U.S. dollar benchmark Eurobond issue. Bank of America Merrill Lynch, Credite Suisse and RBS are managing the deal.

One fund management source told the news agency that “They have missed the window and do not want to overpay because speculators are playing against the euro.” Another banking industry source speculated that MTS was likely to return to the plan after the volatility abates.

Yelena Kokhanovskaya, a spokeswoman for MTS – which is looking for up to US$1bn this year to refinance its debt – affirmed that “We have always said that the decision on the timing would depend on market conditions.”