Metinvest to pay USD 6.5 mln in Eurobond interest on Jan. 18

Ukraine’s leading steel holding Metinvest (METINV) reported
on Jan. 11 that it will allocate USD 10.2 mln in an early repayment on Jan. 18,
of which the only disbursement to the noteholders would be the USD 6.5 mln of
Pay-If-You-Can (PIYC) interest for the period of Dec. 18 – Jan. 17. The
Eurobond principal amount outstanding will remain the same as on Dec. 18, USD
1,187 mln.

Recall, Metinvest had made an analogous payment to
noteholders (USD 6.5 mln of PIYC interest) a month ago.

Dmytro Khoroshun: These
monthly early payments of PIYC interest should have very little effect on
Metinvest’s finances when compared to paying the PIYC interest once a quarter.
The only pronounced effect for the noteholders is a further complication with
trading the Eurobond because calculating and settling the accrued coupon might
require more effort.

We are
keeping our neutral view on METINV Eurobonds.