OREANDA-NEWS. June 02, 2011. KOKS Group completes buyback of outstanding 12% RUR 5bn bond issue concurrent with a new RUR 5bn bond issue with a 3 year tenor and 8.7% coupon On June 1, 2011, KOKS Group has successfully fulfilled an offer for the buy-back of its 02 series bonds from their holders. Bond holders put the bonds for a total of RUR 4 787 744 thousand. With this, Koks has met its outstanding rouble bond buyback obligations.

Concurrently with the rouble bond buyback, the company has successfully placed its RUR 5 bln BO-2 Series Bonds, with nominal value of RUR 5 bln and maturity of 3 years. The BO-2 bonds offer six half-year coupons. No put offer date has been contemplated for the new issue. The bond will be traded on MICEX and was organized in the form of a public subscription through a bookbuilding process. The coupon range of the new issue was announced in the range of 8.7%-9% p.a. The company received 56 orders at the bottom end of the coupon range. The order book was over two times oversubscribed and closed at RUR 11 bln.

The resulting coupon rate was announced at 8.7% p.a., with the rate of all subsequent coupons equal to that of the first one. ZAO VTB Capital, ZAO Raiffeisenbank, Sberbank, AKB Sviaz-Bank acted as joint lead managers in this transaction. ZAO Raiffeisenbank acted as a placement agent. About the Company: KOKS Group is a vertically integrated business focusing on pig iron and coke production, and extraction and processing of coking coal and iron ore. KOKS Group is the world’s largest exporter of merchant pig iron, as well as a leading producer of merchant coke in Russia and Russia’s largest coke exporter.

KOKS Group’s three operational divisions are Coal & Coke, Ore & Pig iron and Powder metallurgy. KOKS Group’s key production facilities are located in the Kemerovo and Tula Regions of the Russian Federation. For additional details, please visit our corporate site www.koksgroup.com.