NLMK (LSE: NLMK), a leading global steel company, today announces the closing of its debut US$500 million 7-year Eurobond offering with an annual coupon rate of 4.95%. Interest payments on the Eurobonds are payable semi-annually. The proceeds from the issue will be used for NLMK’s general corporate purposes, including the refinancing of its debt.
The order book was almost 6x oversubscribed, indicating a high level of demand from a broad range of international investors, including investors in the United Kingdom(28%), the United States (20%), Switzerland (23%), as well other European investors (including Russia) (18%), Asian investors (9%) and MENA investors (2%). Approximately 60% of the issue was purchased by asset managers.
Deutsche Bank AG, London Branch, J.P. Morgan Securities and Société Générale acted as the Joint Lead Managers for the offering. The 4.95% Loan Participation Notes due 2019 were issued by Steel Funding Limited, an Irish company formed for the purpose of issuing the Notes.
Galina Aglyamova, Chief Financial Officer of NLMK, commented: “We are extremely pleased with the positive market reaction to our debut Eurobond offering. The 4.95% coupon represents the lowest coupon ever achieved for a benchmark Eurobond issue among Russia’s non-state-owned companies. The success of the placement reflects the high level of investor confidence in the quality of NLMK’s assets and its strategy. The issue provides us with long-term financing at attractive terms and gives NLMK more flexibility in achieving its strategic goals.”