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On December 16, 2009 MMK placed its RUR 10 bln bonds (series ÁÎ-02) with the maturity period of 1092 days (3 years), 2-year offer and the coupon period of 182 days.
The coupon rate was set based on the results of a coupon rate tender held at MICEX. The total value of demand from investors equaled to RUR 15 bln which translates into almost 1.5x oversubscription.
As the result the annual coupon rate was set at 9.7% (the rate of the 2nd, 3rd and 4th coupons equals the first coupon rate). The coupon rate for the first 2 years is the lowest among other issuers of rouble bonds in the sector issued in 2009.
The proceeds from the placement of the bonds to MMK will be used for general corporate purposes.
The managers of the placement are OJSC “URALSIB” and Investment Company “RFC”, the co-lead manager is The Bank of Moscow.
Information on MMK:
The Magnitogorsk Iron and Steel Works OJSC (MMK) is among the world's largest steel producers and is one of the leaders of Russia's steel industry. The Company is a large steel producing complex encompassing the entire production chain, from preparation of iron ore to downstream processing of rolled steel. MMK turns out a broad range of steel products with a predominant share of value added goods. In 2008 the Company produced 12m tonnes of crude steel and 11m tonnes of commercial products. MMK Group sales stood at USD 10.550 bln. | 
