Demand for MMK Bonds Outstrips Supply 2.5 Times

A tender aimed at deciding on the interest rate on the first coupon of Magnitogorsk Iron & Steel Works (MMK) bonds (Series BO-08, totaling to 5bn RUR, in circulation for three years and with an eighteen-month offer period) was coordinated yesterday. The bond issue is now listed in MICEX Quotation List B.

Investors made over 13bn RUR worth of bids altogether, which means the issue was oversubscribed by more than 2.5 times. All in all, 137 bids were submitted in the course of the tender. In the end, the interest rate on the first coupon of MMK s bonds was set at 8.19% a year, which was in fact less than the 8.30% to 8.50% rate range announced earlier. The interest rates for the second and the third coupons are going to be the same as that on the first coupon. 68 investor bids were accepted (one of them in part only).


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