24 Apr 2023 09:24

Ukraine's Metinvest redeems 2023 Eurobonds in full

MOSCOW. April 24 (Interfax) - Metinvest has fully redeemed its outstanding 7.75% Eurobonds maturing on April 23, 2023, the Ukrainian media said quoting the steel and mining group's statement.

Metinvest's redemption of the bonds on schedule despite the impact that the situation in Ukraine has had on the group's business is "a significant milestone for the Ukraine-related corporate space," CEO Yury Ryzhenkov said.

The reduction of the group's debt burden will give Metinvest "greater financial flexibility amid the inherent unpredictability" of the situation in the country by "eliminating scheduled material principal repayments until 2025," he said.

The dollar-denominated bond issue, totalling $944.5 million, was placed in 2018. At the time of the redemption, there were $145.46 million worth of bonds outstanding.

Metinvest said earlier that it continues to meet its debt obligations, servicing credit and loans, including scheduled bond payments. The group bought back and cancelled bonds totalling $48 million through a tender offer, including $24 million worth of bonds maturing in 2023.

The group's total debt stood at $2.223 billion at the end of June 2022 and the net debt was $1.763 billion, compared to $2.242 billion and $1.076 billion, respectively, as of December 31, 2021.

In future, the company will have to pay 296 million euros on 5.625% Eurobonds maturing in June 2025, $494 million on 8.5% bonds maturing in April 2026, $332 million on 7.65% bonds maturing in October 2027 and $500 million on 7.75% bonds maturing in October 2029.

Metinvest is a vertically integrated mining and steel group that is 71.24% owned by SCM and 23.76% by Smart Holding.