MMK to pay 7.65% on bond coupons
On April 8, 2010, the interest rate for Magnitogorsk Iron & Steel Works (MMK) BO-05 bonds was determined in the course of a tender. The bonds total to 8 billion RUR and are to be in circulation for 1,092 days (three years). Under the conditions of the bond issue, no en-route offers are provided; the coupon period comes to 182 days.
The potential investors placed over 14.5 billion RUR worth of bids for the tender, which meant the issue was oversubscribed by 1.8 times. According to the results of the tender, the interest rate for the first coupon of MMK’s bonds was set at 7.65% a year, whereas the interest rates for coupons two to six was declared the same as that for the first coupon.
MMK reports this coupon interest rate is the lowest among all the other ruble bonds issued by Russian metallurgical enterprises in 2009-2010.
The lion’s share of the money thus obtained will be directed to refinancing the debt of MMK’s daughter enterprises, with the remainder to be used for general corporate purposes.
The potential investors placed over 14.5 billion RUR worth of bids for the tender, which meant the issue was oversubscribed by 1.8 times. According to the results of the tender, the interest rate for the first coupon of MMK’s bonds was set at 7.65% a year, whereas the interest rates for coupons two to six was declared the same as that for the first coupon.
MMK reports this coupon interest rate is the lowest among all the other ruble bonds issued by Russian metallurgical enterprises in 2009-2010.
The lion’s share of the money thus obtained will be directed to refinancing the debt of MMK’s daughter enterprises, with the remainder to be used for general corporate purposes.
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