NLMK closes order book for first installment of its bond issue

Novolipetsk Steel, a leading Russian steel company, is pleased to announced that the company has closed the order book for its first installment of the bond issue (series БО-05).  The issue has a total value of RUR10 billion with a nominal value of RUR1,000 per one bond and a maturity period of 1092 days. The total value of demand from investors was RUR16.211 billion.

The bond’s annual coupon rate is set at 10.75%.  This is the lowest rate for a corporate bond issue with a three year maturity in 2009. Due to the market situation, the price of the placement and the coupon rate, NLMK has decided to accept 42 orders from investors. 

Settlement and delivery of the bonds is expected to take place on 3 November 2009 at the MICEX (Moscow Interbank Currency Exchange).

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

This issue is lead-managed by Gazprombank and Troika Dialog.