Metalloinvest announces early debt refinancing by the new 7-year Eurobond issue  with a record low coupon of 3.375%

 

Moscow, Russia - 8 November 2021 - Metalloinvest (the "Company"), a leading global iron ore and HBI producer and supplier, and one of the regional producers of high-quality steel, announces early refinancing of part of its debt portfolio due to a new 7-year Eurobond issue and tender offer of existing Eurobonds maturing in 2024.

On 22 October 2021, the Company placed a new USD 650 mn Eurobond issue with maturity in 2028 and 3.375% coupon, representing the lowest coupon in Metalloinvest's 10+ year history in the public capital markets. The new issue was rated at investment grade level by S&P (BBB-) and Fitch (BBB-).

Initial investors' interest resulted in more than USD 1.5 bn orders during the book building, which allowed to lower the coupon by 25 bps from the initial 3.625% area. The notes have been allocated to investors from the United Kingdom (30%), Europe (25%), Russia (18%), Asia (14%) and the Americas (13%). Approximately 54% of the offering was purchased by asset managers and funds, 39% by banks and private banking clients, and the remainder were acquired by sovereign funds.

The Company used the proceeds from the offering to finance the tender offer on its USD 800 mn 4.85% notes, due in 2024. The settlement of the tender offer was completed on 5 November 2021.

Alexey Voronov, Deputy CEO - Chief Financial Officer of Metalloinvest, commented:

"We are pleased to announce the completion of all stages of the transaction for the early refinancing of a part of the Company's loan portfolio.

"The new 7-year Eurobond issue in the amount of USD 650 mn was not only placed at a record low coupon rate for the Company - 3.375%, but also recorded the lowest ever spread to the sovereign curve - about 90 bps, which became possible following the achievement of investment grade credit ratings from all three international agencies earlier this year.

"Together with the full redemption of 2024 Eurobonds with a par value of USD 800 mn, the Company reduced its total debt by USD 150 mn, improved its loan portfolio parameters and brought the covenants for the new issue in line with market practices for IG-rated companies."

J.P. Morgan, Sber CIB and Société Générale CIB acted as global coordinators and bookrunners, with Gazprombank, UBS Investment Bank, Deutsche Bank, UniCredit Bank, IMI - Intesa Sanpaolo and VTB Capital acting as joint lead managers and bookrunners of the offering.

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If you have any questions, please contact us:

Artem Lavrischev
Investor Relations

E: ir@metalloinvest.com

T: +7 (495) 981-55-55, ext. 7243

Anton Troshin

Public Relations

E: pr@metalloinvest.com

T: +7 (495) 981-55-55, ext. 7629

Metalloinvest is a leading metals and mining company with the second-largest proven iron ore reserves on a JORC-equivalent basis
(13.8 billion tonnes and about 136 years of reserve life). The company is the world's largest producer and supplier of merchant hot briquetted iron (HBI) products, a low-carbon raw material used to produce green steel; Metalloinvest holds a leading position in the production of pellets, iron ore concentrate and high-quality steel.

In H1 2021, revenue amounted to USD 5.1 bn; EBITDA - USD 2.9 bn. The company has 10+ years track record on public debt capital markets with high credit ratings: S&P (BBB-/stable), Fitch (BBB-/stable), Moody's (Baa3/stable), АCRА (AA+(RU)/positive).

Alisher Usmanov is the main beneficiary of the company (with a 49% stake) through Holding Company USM LLC.

Ticker (Bloomberg): METIN RU; official website: www.metalloinvest.com