NLMK announced the placement of 7-year $500-million Eurobonds with an annual coupon rate of 4.7% payable semi-annually. The proceeds will be used for general corporate purposes.
The issue was oversubscribed more than three-fold with the order book exceeding $1.7 billion at the peak and more than 150 investors. The final order book was subscribed by a broad range of international investors, including investors from the UK (40%), Europe (27%), the United States (15%), Russia (15%) and others, with Asset Managers & Funds taking the majority (78%) of allocations followed by Banks & Private Banks (22%).
J.P. Morgan and Société Générale acted as the Joint Global Coordinators and Joint Bookrunners, and ING and UniCredit Bank acted as the Joint Bookrunners for the new issue.
The 4.7% Loan Participation Notes due in May 2026 were issued by Steel Funding D.A.C., an Irish company formed for the sole purpose of issuing debt instruments and financing loans to NLMK.
Shamil Kurmashov, Chief Financial Officer of NLMK, commented: “We are very pleased with the successful placement of the Company’s Eurobonds backed by a very high level of interest from fixed income investors globally. The 4.7% coupon is the lowest USD coupon achieved by a corporate issuer out of Russia and CIS since September 2017 with a 7-year tenor or longer.” (NLMK/Ukrainian metal)