Foreign investors buy over 90% of Severstal’s new bonds for $500 mln

Nadezhda Ivanova's picture

Foreign investors have bought more than 90% of eurobonds of Severstal to the amount of $500 million, the share of Russian investors made up 9% of the bought securities, the company informs.

On February 16, Steel Capital S.A. - a subsidiary of Severstal - completed the placement of the eurobonds for $500 million maturing in August 2021 and having a coupon rate of 3.85% per year. The demand for the securities exceeded $2.3 billion.

81% of the investors are major funds, 19% - banks.

The US investors bought about 19% of the securities, the UK ones - 21%, the investors from continental Europe (excluding Switzerland) - 35%, Swiss investors purchased 11% of the eurobonds, and investors from Asia and other regions - 5%.

"Due to the confidence of the investors in the  stable financial position of the company, we were able to fix for the new eurobonds a record low rate on the Russian market over the past 10 years. And this is the second successful deal of Severstal to raise funds for the last time - earlier in February for the first time in the history of the Russian corporate sector, we managed to place the convertible bonds with a zero coupon rate," - said the company’s representative.

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