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30 May 2019

NLMK places $500 m 7-year Eurobond

NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES.

THE INFORMATION CONTAINED HEREIN IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART IN OR INTO THE RUSSIAN FEDERATION SUBJECT TO CERTAIN EXCEPTIONS. THESE WRITTEN MATERIALS ARE NOT, AND UNDER NO CIRCUMSTANCES ARE TO BE CONSTRUED AS, AN ADVERTISING OR AN OFFER OR AN INVITATION TO MAKE OFFERS TO SELL, PURCHASE, EXCHANGE OR OTHERWISE TRANSFER OR DISPOSE OF ANY SECURITIES OR OTHER FINANCIAL INSTRUMENTS IN THE RUSSIAN FEDERATION WITHIN THE MEANING OF RUSSIAN SECURITIES LAWS OR TO OR FOR THE BENEFIT OF ANY PERSONS OR ENTITIES RESIDENT, INCORPORATED, ESTABLISHED OR HAVING THEIR USUAL RESIDENCE IN THE RUSSIAN FEDERATION. INFORMATION CONTAINED HEREIN IS NOT INTENDED FOR ANY PERSONS LOCATED WITHIN THE TERRITORY OF THE RUSSIAN FEDERATION, WHO ARE NOT “QUALIFIED INVESTORS” (THE “RUSSIAN QIS”) WITHIN THE MEANING OF ARTICLE 51.2 OF THE RUSSIAN FEDERAL LAW “ON THE SECURITIES MARKET” NO. 39-FZ DATED 22 APRIL 1996, AS AMENDED, AND MUST NOT BE DISTRIBUTED OR CIRCULATED INTO THE RUSSIAN FEDERATION, OR MADE AVAILABLE IN THE RUSSIAN FEDERATION, TO ANY PERSONS WHO ARE NOT RUSSIAN QIS, UNLESS AND TO THE EXTENT THEY ARE OTHERWISE PERMITTED TO ACCESS SUCH INFORMATION UNDER RUSSIAN LAW. THE SECURITIES HAVE NOT BEEN AND WILL NOT BE REGISTERED IN RUSSIA OR ADMITTED TO PLACEMENT AND/OR PUBLIC CIRCULATION IN THE RUSSIAN FEDERATION AND THE INFORMATION CONTAINED HEREIN IS NOT TO BE MADE PUBLICLY AVAILABLE IN THE RUSSIAN FEDERATION. THE SECURITIES ARE NOT INTENDED FOR “OFFERING”, “PLACEMENT” OR “CIRCULATION” (EACH AS DEFINED IN RUSSIAN SECURITIES LAWS) IN THE RUSSIAN FEDERATION, EXCEPT AS PERMITTED BY RUSSIAN LAW.

NLMK (LSE: NLMK, MOEX: NMLK), the largest steel producer in Russia and a leading international steel company, rated BBB / stable (Fitch Ratings), Baa2 / stable (Moody’s), BBB- / stable (S&P Global) announced today the placement of 7-year $500 m Eurobonds with an annual coupon rate of 4.7% payable semi-annually. The proceeds will be used for general corporate purposes.

The issue was oversubscribed by more than three times with the order book exceeding $1.7 bn at the peak and more than 150 investors. The final order book was subscribed by a broad range of international investors, including investors from the UK (40%), Europe (27%), the United States (15%), Russia (15%) and others, with Asset Managers & Funds taking the majority (78%) of allocations followed by Banks & Private Banks (22%).

J.P. Morgan and Société Générale acted as the Joint Global Coordinators and Joint Bookrunners, and ING and UniCredit Bank acted as the Joint Bookrunners for the new issue. The 4.7% Loan Participation Notes due in May 2026 were issued by Steel Funding D.A.C., an Irish company formed for the sole purpose of issuing debt instruments and financing loans to NLMK.

Shamil KurmashovShamil KurmashovVice President, Finance
Biography
, Chief Financial Officer of NLMK, commented: “We are very pleased with the successful placement of the Company’s Eurobonds backed by a very high level of interest from fixed income investors globally. The 4.7% coupon is the lowest USD coupon achieved by a corporate issuer out of Russia & CIS since September 2017 with a 7-year tenor or longer. ”

DISCLAIMER 

This announcement is not an offer of securities for sale in the United States. The Notes have not been and will not be registered under the US Securities Act of 1933, as amended (the “Securities Act”), or with any securities regulatory authority of any state or other jurisdiction of the United States. Consequently, the Notes may not be offered, sold, resold, transferred, delivered or distributed, directly or indirectly, into or within the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and in compliance with any applicable securities laws of any state or other jurisdiction of the United States. No public offering of the Notes is being made in the United States.

This document does not constitute an invitation or inducement to engage in investment activity within the meaning of the UK Financial Services and Markets Act 2000. This announcement is only being distributed to and is only directed at (1) persons who are outside the United Kingdom, (2) to investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”) or (3) high net worth entities, and other persons to whom it may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order (all such persons together being referred to as “Relevant Persons”). The Notes to which this announcement relates are only available to, and any invitation, offer or agreement to subscribe, purchase or otherwise acquire such Notes will be engaged in only with, Relevant Persons. Any person who is not a Relevant Person should not act or rely on this announcement or any of its contents. Persons distributing this announcement must satisfy themselves that it is lawful to do so.

The information contained herein is not for release, publication or distribution in whole or in part in or into the Russian Federation subject to certain exceptions. These written materials are not, and under no circumstances are to be construed as, a public offer or advertising or an invitation to make offers to sell, purchase, exchange or otherwise transfer or dispose of any securities, including securities of foreign issuers, or other financial instruments in the Russian Federation within the meaning of Russian securities laws or to or for the benefit of any persons or entities resident, incorporated, established or having their usual residence in the Russian Federation, or to or for the benefit of any person located within the territory of the Russian Federation, who is not a “qualified investor” within the meaning of Article 51.2 of the Russian Federal Law “On the Securities Market” No.39-FZ dated 22 April 1996, as amended and must not be distributed or circulated into the Russian Federation or made available in the Russian Federation, unless and to the extent they are otherwise permitted to access such information under Russian law. The securities have not been and will not be registered in Russia or admitted to placement and/or public circulation in the Russian Federation and the information contained herein is not to be passed on to third parties or otherwise be made publicly available in the Russian Federation. The securities are not intended for “offering”, “placement” or “circulation” (each as defined in Russian securities laws) in the Russian Federation, except as permitted by Russian law.

The distribution of this document in other jurisdictions may be restricted by law and any person into whose possession this document comes should inform themselves about, and observe, any such restrictions.

This announcement contains inside information.