NLMK to issue 10 year bonds with the total value of RUB 50 bn

Novolipetsk Steel (LSE: NLMK) Board of Directors took a decision to launch the ruble corporate bond program series 01-06 with a maturity of 10 years. The total value of the program is RUB 50 bn. The Board also approved the decision to issue the bonds and the Prospectus of 01-06 series bond emission, reported the press-service.

This new instrument will help NLMK to attract long-term capital to finance its Technical Upgrade Program, as well as other corporate purposes.
In late 2009 the company issued two exchange-traded bonds issues series 01 and 05 for a total amount of rub 15 bn. Those two issues were placed as a part of NLMK’s previously registered program with the total value of rub 50 bn. On the 9th of March 2010, the company is placing additional issue of exchange-traded bonds series 06 with the total value of rub 10 bn. Proceeds from the placement of this issue will be used to refinance short term bank loans. The main goal, which was to optimize the Company’s debt portfolio, after the placement of the exchange-traded bonds series 06 will be successfully accomplished.
The ten-year corporate bonds program will become the key instrument for the Group when attracting the capital in the domestic debt market.
The new issue is lead-managed by Rosbank, VTB and Raiffeisen Bank.