Russia's Novolipetsk to sell RUB 10 billion exchange-traded bonds; OKs RUB 50 billion bond program

By Susanna Moon

Chicago, March 5 - Novolipetsk Steel OJSC said its board of directors approved the company's RUB 50 billion corporate bond program with a maturity of 10 years.

The company also said it will place an issue of exchange-traded bonds, series 6, for RUB 10 billion on Tuesday.

The company noted that it has issued two exchange-traded bonds issues, series 1 and series 5, for a total amount of RUB 15 billion. The two issues were placed as a part of the company's previously registered program worth RUB 50 billion.

Proceeds from the placement will be used to refinance short-term bank loans. The company said its main goal, which is to optimize its debt portfolio, will be accomplished after the placement of the exchange-traded bonds, series 6.

Rosbank, VTB and Raiffeisen Bank are the lead managers for the new issue.

The 10-year corporate bonds program will become the key instrument for attracting capital in the domestic debt market, according to a company press release.

Novolipetsk is a Lipetsk, Russia-based steel company.

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