Freshfields Bruckhaus Deringer has advised PAO Severstal on its USD 250 million issuance of senior unsecured guaranteed convertible bonds, due 2022. The transaction is the first-ever Russian bond issuance, and, according to Freshfields, one of the first emerging-market bond issuances to achieve zero-coupon pricing.
The bonds are being issued by a subsidiary of, and guaranteed by, Severstal and are convertible into Global Depositary Receipts of Severstal listed on the London Stock Exchange, each representing one ordinary share of the company. This is the third convertible bond issuance from Severstal, following similar deals in 2013 and 2016 on which Freshfields also advised.
Severstal is a steel and steel-related mining company with major assets in Russia as well as investments in other regions.
The Freshfields team was led from London and Moscow by Partners Peter Allen, Dmitry Surikov, and Sarah Murphy.