MMK completes redemption of $300 million Eurobond

Magnitogorsk Iron and Steel Works announced the redemption of its $300 mln Eurobond which matured on October 21, 2008. The Eurobond was redeemed through MMK Finance S.A.

The Eurobond was issued in October 2003 in the amount of $300 mln with a coupon rate of 8% and maturity on October 21, 2008 and was guaranteed by OJSC Magnitogorsk Iron and Steel Works (MMK). Coupon payments for the entire period amounted to $120 mln. 

The capital raised through the Eurobond placement was used for corporate purposes, including financing of MMK’s modernization program.

According to US GAAP financial statements of MMK group of companies for H1 2008, as of June 30, 2008total debt equalled $1.364bln, net debt - $208mln.