MMK Floats 5-Year Eurobond Issue

19 June 2019 (09:29)

UrBC, Magnitogorsk, June 19, 2019. Magnitogorsk Iron & Steel Works (MMK) floated a five-year Eurobond issue (total amount: $500m) at 4.375%, with coupon yield to get paid out twice a year, MMK’s Information, PR & Advertising Department reports.

This is the first time the company has entered the international debt capital market in the last fifteen years. The money will get added to the general corporate spending-related budget.

‘Our offer for subscription resulted in the amount of bids exceeding the proposed bond issue amount by more than 4.5 times. At the height of the bookbinding process, the bids amounted to more than $2.2bn. In the end, the book came to represent a wide range of international investors, with 31%, 29%, and 17% of bonds going to investors from the United States, Europe, and Great Britain, respectively. The rest of the bonds got distributed among the investors based elsewhere,’ the company says.

Citi, J.P. Morgan, and Société Générale acted as the book runners for the issue. $500m worth of guaranteed bonds (interest rate: 4.375% a year; date of maturity: June 2024) got issued by MMK International Capital DAC (based in Ireland and created for the sole purpose of issuing MMK’s bonds and financing MMK’s loans).

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