Metinvest places 2023 bond at 8.0%, 2026 bond at 8.75%

Metinvest (METINV), Ukraine’s largest steelmaker, priced
two Eurobond tranches on Apr. 4, Bloomberg News reported the same day. The
five-year USD 825 mln tranche maturing on Apr. 23, 2023 was issued at 98.986%
of par with a coupon rate of 7.75%, resulting in an 8.0% yield. The eight-year
USD 525 mln tranche maturing on Apr. 23, 2026 was issued at 98.583% of par with
a coupon rate of 8.5%, resulting in an 8.75% yield.

Separately, Metinvest reported on Apr. 5 that the new
rate of interest on its restructured METINV’21 Eurobond will be 7.5%, payable
on June 18 and December 18.

Dmytro Khoroshun: We
calculated that the yields that Bloomberg reported (semi-annual compounding)
result in spreads to Ukraine’s sovereign curve of 125-150 bps.

We will watch closely how the new Eurobonds trade.
If they appreciate substantially, this would mean that the holders of the
METINV’21 Eurobond who purchased the new Eurobond effectively have recovered more than the 105.25%
of par most of them would
receive by tendering their METINV’21 Eurobond and consenting to its
restructuring.