4 December 2012 NLMK Group

NLMK closes the order book for its RUR 10 billion bond issue

NLMK (LSE: NLMK), the leading global steelmaking company, closed the order book for its 08 bond issue on December 4, 2012. The issue has a total value of RUB10 billion, a maturity period of 10 years and a buy back offer in 3 years.

In the course of marketing, book orders were placed by 55 investors for a total of around RUB20.3 billion with a coupon rate from 8.39% to 8.75%.

NLMK has set the first coupon rate at 8.4% per annum. The rate of coupons 2-6 is equal to the rate of the first coupon. Given the market situation, the offering price, the coupon rate for corporate bonds and the current demand, NLMK made the decision to accept orders from 21 investors.

Settlement of the bonds is expected to take place on December 7, 2012 at the Moscow Interbank Currency Exchange (MICEX).

Proceeds from the placement of the bonds will be used to refinance the Company’s short-term debt, as well as for other corporate purposes.

Gazprombank, ZENIT Bank and ROSBANK acted as lead managers.

About NLMK:

NLMK is an international vertically-integrated steelmaking company with production facilities located in Russia, Europe and the US. The liquid steel capacity of its operating units exceeds 15 mtpy. The Company generated $11.7 billion of revenues and a 19.5% EBITDA margin for the full year 2011. The Company's shares and GDSs are traded on the MICEX-RTS and LSE, respectively.


Maria Simonova

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