Metalloinvest (the "Company"), a leading manufacturer and supplier of iron ore products and hot briquetted iron in the world market, one of the regional producers of high-quality steel, announces the closure of the order book for the placement of BO-03 series exchange-traded bonds by open subscription to the amount of 10 billion rubles.
During the formation of the book, investors submitted 40 applications, the demand exceeded the volume of the issue by 4 times. Based on the bookbuilding results, the coupon rate was set at 7.15% per annum, while the initially announced range of 7.30-7.45% per annum.
The circulation period of BO-03 series bonds is 10 years (3,640 days), a put option is stipulated in 5.5 years (2,002 days).
The technical placement of securities on the Moscow Exchange will take place on October 23, 2019. It is expected that after the placement this issue will be included in the Lombard list of the Bank of Russia.
The placement was arranged by VTB Capital, Gazprombank, MKB, Rosbank, Sberbank KIB and Sovcombank. The placement agent is Sberbank KIB.
Alexey Voronov, Chief Financial Officer of the Company, commented:
“We are grateful to investors for their interest in the Company's bonds during today's placement, which allowed us to successfully place securities worth 10 billion rubles under 7.15% per annum and 5.5 years before the offer. This is the historically lowest coupon level for the Company during its entire presence on the Russian debt capital market ”.
Funds from the placement of the new issue will be used to fully redeem BO-01 series bonds for the same amount as part of the exercise of the call option, which will optimize the parameters of the Company's borrowing portfolio.
