OREANDA-NEWS. September 09, 2010. Mechel OJSC (NYSE: MTL), one of the leading Russian mining and steel companies, announces placing its commercial papers of the 13 and 14 series, reported the press-centre of Mechel.

Mechel OJSC completed two placements of its interest-bearing commercial papers of the 13 and 14 series with an obligatory centralized custody (ID serial number 4-13-55005-E of 10.08.2010 - 13 series, 4-14-55005-E of 10.08.2010 - 14 series) at MICEX Stock Exchange ZAO. Placement was performed by public subscription through collection of offers for fixed-price purchase of commercial papers and coupon rate for the first coupon period.

The number of the commercial papers placed makes 10,000,000 pieces (100% of the issue volume), the nominal value of the papers is 1000 roubles each and the total nominal value of the placed bonds is 10,000,000,000 roubles.

The 1st coupon rate of the commercial papers of the 13 and 14 series is 10.0% per year which corresponds to a sum of 49.86 roubles. According to the Decision on the commercial papers issue of the 13 and 14 series and the Prospectus of the papers, the coupon rate from the 2nd to the 10th coupon is equal to the 1st coupon rate.

Coalmetbank OJSC, Sberbank OJSC, AKB Svyaz Bank OJSC, Bank of Moscow and OTKRITIE Investment Bank (JSC) were managers of the placement.

Commercial papers of 13 and 14 series are included to MICEX quotation list A1.

Stanislav Ploshchenko, Mechel’s Chief Financial Officer commented on the event:
“We are satisfied with this placement and we appreciate our investor’s confidence in Mechel. Raised funds will be used to finance Mechel Group’s investment projects, in particular the construction of Elga coal mining complex”.