MMK to pay 9.45% on coupons

Magnitogorsk Iron & Steel Works (MMK) closed up the tender aimed at determining the coupon interest rate for its 5bn-ruble BO-01 bond issue valid for 1,092 days (3 year). The issue provides for an annual offer and the coupon period comes to 182 days.

The investors placed 255 applications for the tender worth 19.9 billion RUR altogether, so the issue was actually oversubscribed by nearly 300%.

According to the results of the tender, the annual interest rate for the first and the second coupons of MMK’s bond issue was set at 9.45%. The coupon yield during the first year of circulation will actually be the smallest among the other ruble bond issues launched in 2009, the company reports.

MMK intends to spend the money obtained through the bond issue on corporate improvements.

The issue was coordinated by Renaissance Capital Financial Consultant, AKB ROSBANK, URALSIB, and RFC Investment Company.

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