Severstal issues euro bonds with the settlement in August 2021 for $500 at 3.85%.
he demand has exceeded $2.3 bln.
The final demand for the company’s euro bonds exceeded $2.3 bln.
The initial profitability of the issue was about 4-4.25%, later it was reduced to about 4%.
The road show of euro bonds was held on February 10-15th in the USA and Europe. The organizers of the issue are Citi, ING, JP Morgan and SG CIB.
In early February the CFO of Severstal, A. Kulichenko, said that the company sees an opportunity of entering the euro bonds market in 2017 so as to refinance the debt of 2018. In 2018 the company needs to settle $549 mln, the entire amount refers to euro bonds.
The debt of 2017 of $649 mln Severstal plans to settle out of the existing monetary funds.
Severstal hasn’t issued classic euro bonds since March 2013 when it sold 5-year euro bonds for $600 mln with the coupon of 4.45%. The euro bonds of that issue need to be settled in March 2018.
The net debt of Severstal on the results of 2016 amounted to $859 mln, the net debt/EITA ratio is 0.4.