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22 October 2015

NLMK closes order book for bond issue for a total of RUB 5 billion

NLMK (LSE: NLMK) closed the order book for its BO-08 exchange bond issues with a value of RUB 5 billion, a maturity period of 10 years, and a put option in 2 years after the date of placement.

29 October 2015 was set as the starting date of the BO-08 series bond placement through public subscription at the Moscow Interbank Currency Exchange (MICEX).

In the course of marketing, book orders were placed by 50 investors for a total of about RUB 25.5 billion. NLMK has set the first coupon rate at 11.10% per annum. The coupon period equals to 182 days. The rate of coupons 2-4 is equal to the rate of the first coupon. Given the market situation, the offering price, the coupon rate for exchange bonds and the current demand, NLMK made the decision to accept orders from 23 investors. Proceeds from the placement of the bonds will be used for general corporate purposes and refinancing of the short-term debt.

Gazprombank, Sberbank CIB, VTB Capital, and Rosbank acted as lead managers.

About NLMK Group

NLMK Group is the largest steelmaker in Russia with vertically integrated business model and one of the most efficient in the world. NLMK’s metal products are used in various industries, from construction and engineering to the manufacture of power-generating equipment and offshore wind turbines.

NLMK's production assets are located in Russia, Europe, and the United States. The Company’s liquid steel production capacity is over 17 million tonnes per year, of which about 16 million tonnes are produced in Russia.
The company generated $10.4 billion in revenue; $2.4 billion in EBITDA; and a net profit of $845 million in 2014.

NLMK’s ordinary shares are traded on the Moscow Stock Exchange (ticker symbol: NLMK), and its global depositary shares are traded on the London Stock Exchange (ticker symbol: NLMK:LI).