Metalloinvest prices its RUB 10 bn bond with a record low coupon rate

Moscow, Russia - 06 February 2020 - Metalloinvest ("the Company"), a leading global iron ore and HBI producer and supplier, and one of the regional producers of high-quality steel, today announces the pricing of its BO-04 series bonds for a total amount of RUB 10 bn through a public offering.

During the book building, investors placed 38 orders that resulted in the issue being oversubscribed by more than 3 times. Following the book building, the coupon rate has been set at 6.55% with an initial price guidance of 6.70-6.85%.

The BO-04 series bonds have a maturity of 10 years (3,640 days). The MOEX placement is scheduled for 12 February 2020.

According to the issue parameters, there is a call option at the bond's nominal value in 3 years (1,092 days) on the maturity date of the 6th coupon. If the Company decides to complete an early repayment on the maturity date of the 6th coupon, investors are entitled to redeem their bonds at 100.50% of the nominal value.

The issue also has a put option at the bond's nominal value in 6 years on the maturity date of the 12th coupon.

The placement was arranged by Alfa-Bank, Gazprombank, Credit Bank of Moscow, Otkritie Bank, Raiffeisenbank, BK Region, Rosbank, Sberbank CIB, Sovcombank and UniCredit Bank. Sberbank CIB acted as the placement agent.

Alexey Voronov, Finance Director of Management Company Metalloinvest, commented:

"We are grateful to the investor community for their interest demonstrated during the book building, which once again confirms the Company's strong financial position and credibility. The proceeds will be used in full to refinance the current debt in order to improve the parameters of our loan portfolio."

Olga Gorokhovskaya, Managing Director, Debt Capital Markets at Sberbank CIB, commented:

"This Metalloinvest placement is unique both for the company and for the market as a whole. The Company was successful in achieving the lowest ever fixed interest rate for the period of 5 years and above. This is a new benchmark in the corporate bond market. We are pleased that our bank participated in this successful placement, which demonstrates investors' continued interest in high-quality issues from companies with strong credit profiles."

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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, ext. 7243

Anton Troshin

Corporate Communications Department

E: pr@metalloinvest.com

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

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 Holding Company USM LLC. Alisher Usmanov is the major beneficiary of Holding Company USM LLC (49%).