Mechel completed placement of its 05 series bonds

Mechel completed placement of its secured non-convertible interest-bearing documentary bonds payable on demand, an opportunity for early redemption at holders’ request and issuer’s discretion provided. Maturity falls 3 276 days after placement date, id est on October 9, 2018. Payment of 36 quarterly coupons and three-year offer for early redemption of bonds provided for.

Placement was performed by public subscription under the terms and conditions of Securities Prospectus and Decision on Securities Issuance through collection of purchasers’ applications for fixed-price purchase of bonds with coupon rate for the first coupon period.

Securities offered in the amount of 5 million, nominal value of each bond being 1 000 rubles. Coupon rate for the first coupon period set at 12.5% per annum. VTB Capital, Gazprombank and Sberbank acted as arrangers for the placement, Uglemetbank being its lead co-arranger.

Stanislav Ploschenko, Mechel’s CFO commented: “We are satisfied with placement results. High demand for our bonds and trends for reduction of borrowing cost provide Russian companies with further opportunities to overcome the downturn manifestations for a transition to investment-driven growth stage. Russian capital market potential allowed for cost-efficient fundraising for Elga coal mine development. We hope as well financial institutions will regard the outcome as a price guidepost in respect of long-term unsecured debt of the company”.