Mechel OAO one of the leading Russian mining and metals companies, announces successful closure of the books for the placement of its commercial papers of the 19 series.

On June 9 2011 Mechel OAO closed the books for the placement of its interest-bearing commercial papers of the 19 series with an obligatory centralized custody. The papers’ maturity is 10 years with the put option in five years.

The number of the commercial papers to be placed makes 5,000,000 pieces, the nominal value of the papers is RUB 1,000 each and the total nominal value of the placed bonds is RUB 5,000,000,000.

Due to the fact that the demand for Mechel OAO commercial papers of the 17 and 18 series for which the books were closed on June 7 2011 topped RUB 22 billion the papers of the 19 series were offered to the investors on the same conditions. So the coupon rate of the commercial papers of the 19 series for the period until the put option date is 8.40% per year which corresponds to a sum of RUB 41.88.

The papers of the 19 series will be placed on the MICEX Stock Exchange ZAO on June 14 2011 with Coalmetbank OAO acting as the issuer’s agent for the placement.

VTB Capital ZAO, Sberbank OAO and Coalmetbank OAO acted as managers of the placement. Commercial papers of 19 series are included in MICEX’s quotation list A1.