18 Oct 2010 14:05

Evraz starts taking orders for 15 bln rubles in bonds

MOSCOW. Oct 18 (Interfax) - EvrazHolding Finance, an SPV for steel producer Evraz, started taking orders for 10 billion rubles in series two and 5 billion rubles in series 4 bonds at noon Moscow time October 18, the company said.

Guidance on the first coupon on both sets of ten-year bonds is 10%-10.5%. Both issues have a five-year put option.

The order books for both series close at 5.00 p.m. Moscow time on October 28. Troika Dialog and VTB capital are arranging the placements.

Evraz told Interfax that it would use the bond issues to refinance debt.

The Federal Financial Markets Service (FFMS) in December 2009 registered four bond issues worth a total of 30 billion rubles for EvrazHolding. The first and second issues are 10 billion rubles each, and the third and fourth are 5 billion rubles each.

Evraz placed the first and third series at 9.25% pa in March.

Evraz Group, one of the world's biggest vertically integrated steel producers, has upstream and downstream enterprises in Russia, Ukraine, the United States, Italy, the Czech Republic and South Africa.

A company called Lanebrook owns about 72% of Evraz. Lanebrook's beneficiaries are Millhouse, the holding company for the assets of billionaire Roman Abramovich and his business partners (50%), on the one hand, and Alexander Abramov and Alexander Frolov (50%), on the other.