Citigroup has won a bookrunner mandate from Russian steel company Severstal, whose white knight bid for Luxembourg-based steel manufacturer Arcelor failed last month, despite advising Mittal Steel on its successful, hostile bid for the company.

Severstal, which is expected to raise $1.5bn (€1.18bn) through a London listing in the autumn, has hired Deutsche Bank, Citigroup and UBS to lead the deal.