NLMK considering tapping debt markets in 2020 - CEO
DAVOS. Jan 23 (Interfax) - NLMK could tap debt markets in 2020, CEO Grigory Fedorishin told reporters.
"We are interested in tapping debt markets this year. Our active investment program is ongoing. And we are also carrying out our dividend policy. We are considering various instruments - both ruble-denominated bonds and Eurobonds. As for the latter, we are looking at dollar-denominated and euro-denominated bonds. A selection of options is ongoing right now. I think there is a good chance that we will show up on the debt market this year," Fedorishin said, adding that NLMK looks to issue long-term debt - 5-7 years.
He also said NLMK was still looking at green financing, "but the problem is that financial institutions have not yet determined what green financing is, on what terms it is provided and that the point of it is."
NLMK sold $500 million of seven-year Eurobonds at 4.7% per annum in the spring of 2019, allocating the proceeds for Strategy 2022 projects. Prior to that placed $500 million of seven-year bonds at 4% pa in September 2017.
NLMK's total debt was $2.677 billion at end-Q3 and net debt was $1.736 billion. Net debt EBITDA was 0.59x.