The Russian steelmaker Novolipetsk Steel (NLMK) has announced its decision to launch a ruble corporate bond program, series 01-06 with a maturity of ten years, with a total value of Ruble 50 billion ($1.676 billion). In addition, the company's board of directors has also approved the decision to issue the bonds and the prospectus of 01-06 series bond emission.
"This new instrument will help NLMK to attract long-term capital to finance its technical upgrade program, as well as other corporate purposes," reads the company's statement.
In late 2009, NLMK issued two exchange-traded bonds issues series 01 and 05 for a total amount of Ruble 15 billion ($503 million), as a part of its previously registered program with the total value of Ruble 50 billion. On March 9, 2010, the NLMK is placing additional issue of exchange-traded bonds series 06 with a total value of Ruble 10 billion ($335.4 million), the proceeds from which will be used to refinance its short-term bank loans. "The main goal, which was to optimize the company's debt portfolio, will be successfully accomplished after the placement of the exchange-traded bonds series 06."
"The ten-year corporate bonds program will become the key instrument for the group when attracting capital in the domestic debt market," reads NLMK's statement.
The new issue is lead-managed by Rosbank, VTB and Raiffeisen Bank.