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Ilyich Iron and Steel Works

Metinvest successfully sold $500 mln worth Eurobonds

25 May 2010 // Press centre Metinvest Group

Metinvest successfully sold its debut Eurobonds issue $500 ml worth with 10.25% coupon and YTM of the issue is 10.5%. The issue’s maturity date is May 20, 2015. The funds raised will be used to finance the further renewal and modernization of the company’s production assets.

The book volume has been substantially oversubscribed. Two thirds of the issue were bought by European investors, one third — by investors from the US. The bonds will be officially listed starting May, 20th.

“The demand for Metinvest’s bonds remained at sufficiently high level despite the situation emerging around Greece and sharply deteriorated global investment sentiments: the issue has been considerably oversubscribed”, – noted Sergiy Novikov, Metinvest’s CFO.     

BNP Paribas, Credit Suisse, ING, The Royal_Bank of Scotland plc and VTB Capital were mandated as joint lead managers and joint bookrunners for Metinvest’s debut US$ Rule 144A/Reg. S issue.

Moody’s Investors Service assigned the future bond issue “(P)B3” rating in the end of April and Fitch assigned Metinvest’s planned note issue expected ’B-’ rating. The agencies also revised the CFR of the company: Moody’s upgraded the outlook of Metinvest “B2” from “stable” to “positive” and upgraded the national scale rating from “A2.ua” to «А1.ua», Fitch affirmed the CFR at “B-” stable.

For editors: 

Not for release, directly or indirectly, in the United States of America, Australia, Canada or Japan. The securities referred to herein have not been and will not be registered under the US Securities Act of 1933, as amended (the “Securities Act”), and may not be offered or sold in the United States or to US persons unless the securities are registered under the Securities Act, or an exemption from the registration requirements of the Securities Act is available. These materials do not constitute or form part of any offer or solicitation to purchase or subscribe for securities in the United States. No public offering of the securities will be made in the United States.

Metinvest is an international vertically integrated mining and steel group of companies. Production facilities of Metinvest produce enough steelmaking raw materials to meet its own demand and to be the key supplier to major steelmaking companies in Ukraine, Europe and Asia. The major shareholders of Metinvest are SCM Group (75% ownership) and Smart-Holding (25% ownership) partnering in Company’s management.

METINVEST HOLDING, LLC is the managing company of Metinvest Group.