OREANDA-NEWS. Metalloinvest, a leading global iron ore and HBI producer, today announces the issue of USD1 bn in 7-year Eurobonds with annual coupon rate of 5.625%, paid semi-annually. The proceeds have been entirely used for repayment of the existing indebtedness, which resulted in shifting the Company’s earliest scheduled repayments of the US Dollar nominated debt to Q2 2015.

Well-coordinated marketing covering the US, the UK, Switzerland, and France, as well as investor breakfast in Moscow preceding the deal roadshow, supported by the credit rating upgrade and outlook revision by Moody’s and Fitch Ratings, were hugely successful in attracting investors’ interest for Metalloinvest new benchmark Eurobond driven mainly by appreciation of the Company’s strong credit quality.

Metalloinvest capitalized on the deal momentum as well as favorable market conditions and opened the book one day prior than initially scheduled. Investors showed huge interest for the offering: more than 260 orders were placed with the book totaling to c. USD3.7 bn.

Demand from the United States (35%) and the United Kingdom (27%) was supported by investors from various other regions, including Europe (17%), Russia (17%), Switzerland (4%), and others. In terms of investor type, approximately 78% of the issue was purchased by asset managers.

The Eurobonds were issued by Metalloinvest Finance Limited, a 100% indirect subsidiary of OJSC Holding Company METALLOINVEST.

Credit Suisse, Deutsche Bank, VTB Capital, Credit Agricole CIB, Sberbank CIB, and Societe Generale CIB acted as Joint Lead Managers of the offering.

Overall, the transaction represents a uniquely successful trade, with Metalloinvest achieving an exceptional pricing result: the lowest ever corporate 7-year Eurobond yield out of the CIS issuers with non-investment grade.

Pavel Mitrofanov, Chief Financial Officer of Metalloinvest, commented: “We are satisfied with the results of the placement. The large asset managers from various regions participated in the offering of the Company’s notes. The proceeds have provided the Company with long-term financing at a reasonable price and, we believe, would support further improvement of Metalloinvest debt profile”.