OREANDA-NEWS. METALLOINVEST closed the book for the placement of its non-convertible interest-bearing documentary bonds of the 02 and 03 series for a total amount of RUR10 bn (c. USD332 mn*). The bonds mature in 10 years (3,640 days) with a put option in 5 years (1,820 days). As a result of the placement, the coupon rate was set at 8.90% per annum, which is below the bottom of an earlier announced price range of 9.00-9.50%.

Investors placed 44 orders for the series 02 and 03 bonds with the book totaling above RUR20 bn. The book was oversubscribed two times.

Settlements for the series 02 and 03 bonds will take place upon the bond placement on MICEX on February 8, 2013. Secondary trading is expected to commence within two weeks. The issue is expected to be included into the Lombard list of the Central Bank of Russia.

Sberbank CIB and VTB Capital have been acting as Lead Managers and Joint Bookrunners of METALLOINVEST’s offering. Alfa-Bank and Globexbank have been acting as Co-Managers, Baltic Financial Agency and Khanty-Mansiysky Bank – as Underwriters, Region and RONIN – as Co-Underwriters of the placement.

Pavel Mitrofanov, Deputy CEO and Chief Financial Officer of METALLOINVEST Management Company, commented: “We decided to issue additional series of ruble bonds, taking advantage of favourable market conditions and building on our successful experience of the previous year’s bond placement. The Company successfully placed the long-term ruble bond with a put option in 5 years which is the first issue under such parameters to have been placed over the last one and a half years by a Russian metals and mining company. The proceeds will be used to refinance the Company’s debt due in 2014”.