NLMK closes its $500 mln 7-year Eurobond offering

Date: 21 September 2017

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NLMK closes its U.S.$500 million 7-year Eurobond offering

NLMK (LSE: NLMK), the largest steel producer in Russia and a leading international steel company, today announces the closing of its U.S.$500 million 7-year Eurobond placement with an annual coupon rate of 4.00%. Interest payments on the Eurobonds are payable semi-annually.

The proceeds from the issue will be used to finance the purchase of existing Notes due 2018 and 2019 in accordance with the terms and conditions of the Tender Offer announced on 4 September 2017 (settlement is expected on 26 September 2017), as well as for NLMK's general corporate purposes and refinancing of its current debt.

The final order book indicated a high level of demand from a broad range of international investors, including investors in Europe (38%), the United States (33%), and Russia (25%). Approximately 60% of the issue was purchased by asset managers.

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 4.00% Loan Participation Notes due 2024 were issued by Steel Funding D.A.C., an Irish company formed for the purpose of issuing debt instruments for financing loans to NLMK.

Sergey Karataev, acting Chief Financial Officer of NLMK, commented: "The successful placement reflects the high level of strong investor confidence in NLMK's business model and its financial strategy. We took advantage of favourable market conditions and strong demand from international investors for high quality credit. The 4.00% coupon represents the lowest rate ever achieved by Russia's non-state-owned issuers for a benchmark U.S.$ Eurobond issue of 7 years or longer. The issue reduces our funding costs and supports future strategic development of the NLMK Group."

Enquiries:

Media contact info:

Sergey Babichenko

+7 (916) 824 6743

babichenko_sy@nlmk.com 

Investor Relations contact info:

Sergey Takhiev

+7 (495) 504 0504

st@nlmk.com

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About NLMK Group

NLMK Group is the largest steelmaker in Russia and one of the most efficient in the world.

NLMK Group's high-quality steel products are used in various industries, from construction and machine building to the manufacturing of power-generation equipment and offshore windmills.

NLMK operates production facilities in Russia, Europe and the United States. The Company's steel production capacity exceeds 17 million tonnes per year.

NLMK has the most competitive cash cost among global manufacturers and one of the highest profitability levels in the industry. In the six months ended 30 June 2017, the Company generated $4.7 billion in revenue and $1.22 billion in EBITDA. As of 30 June 2017, net debt/EBITDA stood at 0.4х. The company has an investment grade credit rating from S&P and Fitch.

NLMK's ordinary shares with a 16% free-float are traded on the Moscow Stock Exchange (ticker "NLMK") and its global depositary shares are traded on the London Stock Exchange (ticker "NLMK:LI"). For more details on NLMK's shareholder capital, please follow the link.

NLMK Group received the Steel Industry Leadership Award at the prestigious 2016 Platts Global Metals Awards held by S&P Global Platts, a leading international analytical agency.

For more information on NLMK Group, please visit our website.

NLMK Group in Social Media

DISCLAIMER

This document does not constitute an invitation or inducement to engage in investment activity within the meaning of the UK Financial Services and Markets Act 2000. This announcement is only being distributed to and is only directed at (1) persons who are outside the United Kingdom, (2) to investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "Order") or (3) high net worth entities, and other persons to whom it may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order (all such persons together being referred to as "Relevant Persons"). The Notes to which this announcement relates are only available to, and any invitation, offer or agreement to subscribe, purchase or otherwise acquire such Notes will be engaged in only with, Relevant Persons. Any person who is not a Relevant Person should not act or rely on this announcement or any of its contents. Persons distributing this announcement must satisfy themselves that it is lawful to do so.

This announcement or information contained therein is not an offer, or an invitation to make offers, sell, purchase, exchange or transfer any securities in the Russian Federation to or for the benefit of any Russian person or entity, and does not constitute an advertisement or offering of any securities in the Russian Federation within the meaning of Russian securities laws. Information contained in this announcement is not intended for any persons in the Russian Federation who are not "qualified investors" within the meaning of Article 51.2 of the Federal Law no. 39-FZ "On the securities market" dated 22 April 1996, as amended ("Russian QIs") and must not be distributed or circulated into Russia or made available in Russia to any persons who are not Russian QIs, unless and to the extent they are otherwise permitted to access such information under Russian law. The securities have not been and will not be registered in Russia and are not intended for "placement" or "circulation" in Russia (each as defined in Russian securities laws) unless and to the extent otherwise permitted under Russian law.

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