MMK.L Regulatory News (MMK)

March 03, 2011  Moscow

MMK announces the results of its RUR 5 bln bonds placement at MICEX

On March 03, 2011 MMK placed its RUR 5 bln bonds (series БО-04) with the maturity period of 1092 days (3 years). The offer for the issue is not provided. The issue is included in the list "Б" at MICEX.

The total value of demand from investors equaled to RUR 8.746 bln which translates into 1.75x oversubscription. The first coupon rate was set based on the results of a coupon rate tender held at MICEX. As the result the annual coupon rate was set at 7.65%, which equals to the bottom of the earlier announced price range. The rate of the second-third-fourth-fifth-sixth coupon equals the first coupon rate. The overall number of bids was 46.

This bond issue was placed in line with the strategy of financing raising for MMK's investment programme realization. The programme aims at organic growth of the company and increase of HVA products share in the production portfolio.

The managers of the placement are OAO "URALSIB" and Investment Company RFC

Information on MMK:

MMK is among the world's largest steel producers and is one of the leaders of Russia's steel industry. The company's operations in Russia include a large steel producing complex encompassing the entire production chain, from preparation of iron ore to downstream processing of rolled steel. MMK turns out a broad range of steel products with a predominant share of higher value added products. MMK realizes MMK-Atakas project in Turkey with annual capacity of 2.3 mln tons of flat steel. In 2010 MMK Group produced 11.4 mln tons of crude steel and 10.4 mln tons of commercial steel products.

Contacts:

Investor Relations Department:

Evgeny Kovtunov, Head of IRPhone.: +7 (3519) 24-93-55E-mail: kovtunov@mmk.ru 

Communications Department: