Mechel, one of the leading Russian mining and steel groups, has announced that on November 13 it completed the initial placement of its stock secured non-convertible bonds at the largest stock exchange in the CIS countries, MICEX Stock Exchange, to the total nominal value of Ruble 5 billion (approx. $174.21 million).
The number of the placed bonds totals 5,000,000, while the nominal value of the bonds is Ruble 1,000 each (about $34.85).
"Unlike the ordinary bonds whose last issue was placed at the end of October 2009 to provide financing for the Elga coal deposit development, these stock bonds were issued only in order to optimize Mechel Group's debt portfolio. Following the successful placing of the previous bonds series, Mechel together with its bonds placement managers made good use of the market interest on Mechel's borrowings in the open market. This will allow us to repay more expensive bank loans raised at the end of last year and the beginning of the current year," Mechel's CFO S.A. Ploshchenko commented.