Not for release, distribution or publication, directly or indirectly, into or in the United States, Canada, Australia, Japan or the Russian Federation.

Metalloinvest successfully places a USD 800 million 7-year Eurobond Offering

Moscow, Russia - 2 May 2017 - Metalloinvest (the 'Company'), a leading global iron ore and HBI producer and supplier, and one of the regional producers of high-quality steel, announces the successful placement of USD 800 million 4.85% guaranteed notes due 2024 (the 'Notes').

A well-coordinated marketing effort covering qualified investors in the USA, the UK, Switzerland, Germany and Russia attracted significant interest from investors in the new offering.

Initial investors' interest resulted in more than USD 2 billion orders at the time the book was opened. The Notes have been allocated to over 100 investors from Continental Europe (31%), Russia (28%), the United Kingdom (22%), the United States (11%), Asia and others (8%). Approximately 57% of the offering was purchased by banks and private banks, 36% by asset managers and funds and the remainder of the Notes were acquired by pension funds and insurance companies.

Credit Suisse, Sberbank CIB, Société Générale, and VTB Capital acted as Global Coordinators and Bookrunners and BofA Merrill Lynch, Gazprombank, and ING acted as Joint Lead Managers and Bookrunners of the offering.

The Company intends to use the proceeds from the offering of the Notes to finance the tender offer on its USD 1.0 billion 5.625% notes due 2020 and for general corporate purposes. A participation rate of 66.7% was achieved in the tender offer launched on 13 April 2017, i.e. a total principal amount of USD 667 million of notes was tendered. According to the Bookrunners, this marks the highest repurchase volume on a single-bond tender offer in Russia in recent years. The settlement of the tender offer is scheduled for 5 May 2017.

 

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For more information, please contact:

Artem Lavrischev
Director of Investor Relations and Corporate Ratings
E: ir@metalloinvest.com
T: +7 (495) 981-55-55


 

DISCLAIMER

The information contained herein is not for release, distribution or publication, directly or indirectly, into or in the United States (including its territories and possessions, any state of the United States and the District of Columbia), Canada, Australia or Japan. These written materials are not an offer to sell or a solicitation of an offer to buy the Notes in the United States, Canada, Australia or Japan or in any other jurisdiction where such offer or sale would be unlawful.

The Notes and the Guarantees (as defined in the Listing Particulars) (together, the 'Securities') have not been and will not be registered under the US Securities Act of 1933, as amended (the 'Securities Act'), or with any securities regulatory authority of any state or other jurisdiction of the United States. Consequently, the Securities may not be offered, sold, resold, transferred, delivered or distributed, directly or indirectly, into or within the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and in compliance with any applicable securities laws of any state or other jurisdiction of the United States. No public offering of the Securities is being made in the United States.

This document does not constitute an invitation or inducement to engage in investment activity within the meaning of the UK Financial Services and Markets Act 2000. This document is only being distributed to and is only directed at: (i) persons who are outside the United Kingdom; (ii) persons who are investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the 'Order') or (iii) high net worth entities and other persons to whom it may otherwise lawfully be communicated, falling within Article 49(2) of the Order (all such persons together being referred to as 'relevant persons'). The Securities are available only to, and any invitation or offer may be directed at, or any agreement to subscribe for, purchase or otherwise acquire, any securities will be engaged in only with, in the United Kingdom, relevant persons and, in any other jurisdiction, persons to whom it can lawfully be communicated and who may lawfully engage in such investment activity. Any person in the United Kingdom who is not a relevant person should not act or rely on this announcement or any of its contents.

This document is an advertisement and not a prospectus for the purposes of applicable measures implementing EU Directive 2003/71/EC and as such does not constitute an offer to sell or the solicitation of an offer to purchase securities. The listing particulars (the 'Listing Particulars') have been prepared for the purpose of giving information with regard to the Issuer, the Parent, the other Guarantors and the Parent's (each such term as defined in the Listing Particulars) consolidated subsidiaries taken as a whole (the 'Group') and the Securities. The Listing Particulars can be obtained from the website of the Irish Stock Exchange. Investors should not subscribe for any securities referred to in this document except on the basis of the information contained in the Listing Particulars.

This document or information contained herein is not an offer, or an invitation to make offers, to sell, exchange or otherwise transfer securities in the Russian Federation to or for the benefit of any Russian person or entity and does not constitute an advertisement or offering of securities in the Russian Federation within the meaning of Russian securities laws. Information contained in this document is not intended for any persons in the Russian Federation who are not 'qualified investors' within the meaning of Article 51.2 of the Federal Law no. 39-FZ 'On the Securities Market' dated 22 April 1996, as amended (the 'Russian QIs') and must not be distributed or circulated into Russia or made available in Russia to any persons who are not Russian QIs, unless and to the extent they are otherwise permitted to access such information under Russian law. Any securities referred to in this document have not been and will not be registered in Russia and are not intended for 'placement', 'circulation', 'offering' or 'advertising' in Russia (each as defined in Russian securities laws) unless and to the extent otherwise permitted under Russian law.

 

_{Metalloinvest is a leading global iron ore and merchant HBI producer and supplier, and one of the regional producers of high-quality steel. The Company has the world's second-largest measured iron ore reserve base and is one of the lowest-cost iron ore producers.}

_{Metalloinvest is wholly owned by USM Holdings. Alisher Usmanov is the major beneficiary of USM Holdings (49%), with other major beneficiaries being the companies of Vladimir Skoch (30%) and Farhad Moshiri (10%).}