Azovstal Starts Eurobond Road Show.

The show started today in Manila and will travel to Hong Kong, Zurich, Geneva, Frankfurt and London. ING and Moscow Narodny Bank are serving as the issue managers. While the company’s representatives did not give many details, according to Moody’s, Azovstal (AZST: SELL) plans to issue loan participation notes (LPN) worth USD 200 mln, with a maturity from three to five years. Moody’s rating for Azovstal is (P)B2, and the outlook is stable. Concorde Capital: Azovstal is controlled by Ukraine’s largest business group, System Capital Management (SCM). In 2005, Azovstal completed its merger with a Markokhim Coke. The company’s restructuring and the issue of Eurobonds indicate SCM’s commitment to greater transparency which has been picking up speed since 2005. Proceeds from the issue will be used to modernize Azovstal’s assets, a necessary step for all Ukrainian steel mills if they wish to stay competitive.