12 September 2012 NLMK Group

NLMK closes the order book for RUB5 billion 07 series bond issue

NLMK (LSE: NLMK), the leading global steelmaking company, closed the order book for its 07 bond issue series with a nominal value of RUB1,000 per bond on September 11, 2012. The issue has a total value of RUB5 billion, a maturity period of 10 years and with a buy back offer in 2.5 years.

In the course of marketing, book orders were placed by over 30 investors for a total of around RUB8 billion with a coupon rate from 8.40% to 8.60%.

NLMK has set the first coupon rate at 8.50%. The rate of coupons 2-5 is equal to the rate of the first coupon. Given the market situation, the offering price, the coupon rate for corporate bonds and the current demand, NLMK made the decision to accept orders from 25 investors.

Settlement of the bonds is expected to take place on September 17, 2012 at the Moscow Interbank Currency Exchange (MICEX).

Proceeds from the placement of the bonds will be used to refinance the Company’s short-term debt, as well as for other corporate purposes.

Gazprombank, ZENIT Bank and ROSBANK acted as lead managers.