December 16, 2016 Press Release

Order book closed for Sberbank's exchange-traded structured bonds

On December 15 the order book was closed for Sberbank's series BSO-USDCALL-KO-6m-001Р-01R exchange-traded structured bonds. The bonds (hereinafter 'structured bonds') mature 182 days after the placement date. This instrument includes guaranteed payment of fixed coupon yield, return of the nominal value upon redemption, and the opportunity to receive additional income in the event of positive performance of the Underlying Asset.

The issue of structured bonds involves payment of fixed coupon income amounting to 0.01% per annum and additional income that depends on the dynamics of the US dollar against the rouble, and is defined as a positive change in the USD/RUB exchange rate with a factor of participation in the growth of the rate amounting to 100%, according to the formula:

100% × MAX [(Af - Ai) / Ai; 0], where

- A_i - the value of the Underlying Asset as of bond placement data

- A_f - the value of the Underlying Asset as of the 4^th business day prior to bond redemption

- Underlying Asset - the USD/RUB FX fixing calculated by the Moscow Exchange (MOEX USD / RUB FX FIXING)

- MAX [A; B] - the choice of which value is larger, A or B

Additional income is not paid in the event that the Condition Subsequent arises (the Condition Subsequent is that the value of the USD/RUB rate on the 4^th business day prior to the redemption of the bonds that exceeds the USD/RUB rate as of the placement date by more than 10.89%).

The bonds allow investors to receive potential income of up to 21.84% per annum if the Underlying Asset (USD/RUB exchange rate) strengthens moderately during the circulation of the bonds. If the USD/RUB exchange rate weakens or jumps sharply (by more than 10.89% compared to the exchange rate as of the bond placement date), as of redemption of the bonds investors will receive the nominal value and interest at a fixed coupon rate at 0.01% per annum.

More than 550 clients participated in the placement. Settlements for the transaction will take place on the MICEX Stock Exchange on December 16, 2016 upon placement of the structured bonds. Sberbank plans to use the funds raised for general corporate purposes.

The placement was organised by Sberbank CIB^[1].

Andrey Shemetov, Managing Director, Head of Sberbank CIB's Global Markets Department, commented: 'We are pleased with the outcome of the placement, which involved the participation of a wide range of clients. In addition, demand initially met and ultimately exceeded our expectations. We successfully and comprehensively tested the market with our new instrument which is aimed above all at retail investors - a category of clients that previously hadn't participated in these sorts of placements. This is Russia's first exchange-traded structured product issued by a major Russian bank that is available for all investor categories.'

This is the first issue in Sberbank's exchange-traded structured bonds (ESB) programme that totals RUB 200 bln. In 2017 Sberbank plans to offer investors products that are linked to a wide range of market indicators (stocks, commodities, interest rates, etc.). Specific indicators will be chosen taking into account clients' interest and depending on the market situation. The ESB programme enables investors to realise their expectations over a broad range of market indicators.

Information for editors

Sberbank CIB is the corporate and investment banking business of Sberbank. Its key areas of activity are corporate finance (including trade finance), the documentary business^[2], investment banking services, trade operations with securities, and private equity. Sberbank's corporate and investment banking business provides integrated financial solutions and investment advisory services to its clients, which include major corporations, financial institutions, sovereign states and federal and sub-federal government bodies and organisations.

Additional Information:

Sberbank CIB Press Service

Tel: +7 495 258 05 19

E-mail: pressa@sberbank-cib.ru^[1] On the basis of JSC 'Sberbank CIB'

^[2] Banking products and services provided by Sberbank