Metinvest repays USD 96 mln of PXF, borrows EUR 43.2 mln for CapEx
19 July 2018
Ukraine’s largest steelmaker Metinvest (METINV) voluntarily
repaid USD 96 mln of its PXF loan, decreasing the amount outstanding to USD 528
mln, according to the company’s July 18 release. Metinvest mentioned its decent
cash flows as a backdrop for the repayment.
In a separate July 19 release, Metinvest said that it
has secured a seven-year EUR 43.2 mln loan from Raiffeisen Bank International
AG guaranteed by the Austrian export credit agency (ECA). The ECA loan pays an
undisclosed margin over six-month EURIBOR and will be used to finance the
construction of a 2.5 mmt per year continuous casting machine (CCM) No. 4 at
Ilyich Steel. Recall, Metinvest estimated the total cost of constructing CCM
No. 4 at USD 150 mln, and planned
to complete the construction in 2019.
Dmytro Khoroshun: These maneuvers with the floating-rate debt are neutral for Metinvest’s
Eurobonds, provided that the PXF repayment does not further relax restrictions
on Metinvest’s distribution to shareholders, including dividends.
