Krasnodon Coal To Issue USD 40 mln In Local Bonds

Krasnodon Coal, Ukraine’s leading hard-coking coal producer, has announced plans to issue USD 40 mln in 10-year bullet bonds with a coupon rate of 0.001%. The issue will be bought back by the mine’s major shareholder Avdiyvka Coke (AVDK). All proceeds from the issue will be directed to Krasnodnon’s CapEx program in 2007. Both companies operate under umbrella of Metinvest, the managing company of System Capital Management’s steel division.