Magnitogorsk Sells 10 Billion Rubles of Bonds With 9.7% Coupon

OAO Magnitogorsk Iron & Steel sold 10 billion rubles ($330 million) of three-year bonds paying a 9.7 percent coupon, according to the company’s spokesman Yevgeny Kovtunov.

The bonds have a two-year put option, Kovtunov said by phone today. A put option is the right, not the obligation, to sell the bond at a certain price.

Magnitogorsk sold 5 billion rubles of three-year bonds paying 9.45 percent on Nov. 19. Those bonds had a put option in one year.

To contact the reporter on this story: Ilya Khrennikov in Moscow at ikhrennikov@bloomberg.net

To contact the editor responsible for this story: Simon Casey at scasey4@bloomberg.net

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