On July 14, 2011 MMK placed its RUR 5 bln bonds (series ÁÎ-06) with the maturity period of 1092 days (3 years). The offer for the issue is not provided. The issue is included in the list “Á” at MICEX.

The total value of demand from investors equaled to RUR 14.4 bln which translates into more than 2.9x oversubscription. The first coupon rate was set based on the results of a coupon rate tender held at MICEX. 115 bids were sent for the tender with coupon rate varying from 6.80 to 7.65%. As the result the annual coupon rate was set at 7.20%, which is 0.25% below of the bottom of the earlier announced price range – 7.45-7.65%. The rate of the second-third-fourth-fifth-sixth coupon equals the first coupon rate. The overall number of bids was 43. The rate is the lowest among other issuers of rouble bonds in the sector issued in 2011, and is at the minimal historical level among all MMK bonds issues with the same duration on Russian debt market.
This bond issue was placed in line with the strategy of long-term financing rising for MMK’s investment programme realization. The programme aims at organic growth of the company and increase of HVA products share in the production portfolio.
The managers of the placement are OAO “URALSIB”, OAO “Sviaz Bank” and Investment Company RFC