Russian steelmaker PJSC Novolipetsk Steel said May 30 that a US$500 million placement of seven-year eurobonds was more than three times oversubscribed.

Investors from the U.K. represented 40% of the final order book, while interest from Europe and the U.S. accounted for 27% and 15%, respectively, and Russian investors subscribed for 15% of the notes.

The order book for the 4.7% bonds, which are payable twice a year, exceeded US$1.7 billion at its peak, the company said.

Asset managers and funds picked up the majority of the allocations at 78%, followed by banks and private banks with 22%.

The notes were issued by an Irish company, Steel Funding DAC, which was formed for the sole purpose of issuing debt and financing loans to Novolipetsk. The proceeds will be used for general corporate purposes.

Novolipetsk Steel CFO Shamil Kurmashov said the 4.7% coupon is the lowest U.S. dollar coupon achieved by a corporate issuer out of Russia and the Commonwealth of Independent States since September 2017 with a seven-year tenor or longer. In September 2017, Novolipetsk Steel closed another US$500 million placement to help with refinancing efforts.

Moody's upgraded the steelmaker's long-term rating to Baa2 with stable outlook in February, along with those of rivals PJSC Magnitogorsk Iron & Steel Works and PAO Severstal, after lifting Russia's sovereign debt rating to bottom tier of investment grade.

The company posted a 24% year-over-year drop in net profit for the first quarter, to US$382 million.