Severstal to make loan bond issue

The Board of Directors of Severstal has decided to make the first loan bond issue totaling 3bn rubles ($94.8m), the press service of the company reported. Some 3m documentary unconvertible bonds with a compulsory centralized storing and a par value 1,000 rubles ($31.6) will be placed on the MICEX. The loan to be redeemed on the 1456th day after the placement. The issue envisages eight coupon periods. The interest rate of the first coupon period is to be set at an auction.

The raised funds are to be used partially to finance the company's investment program.

The investment plan for 2003 is worth 7bn rubles ($221m) and it includes the modernization and repair of the company's current production facilities and the construction of new facilities.

In January 2003, Severstal increased steel production to 839.400 tons, which was a 9.9 percent advance compared to the corresponding period of 2002.

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