ArcelorMittal raises Rs750 million through bond issue

30 Dec 2009

1

Luxembourg-based steel giant ArcelorMittal said on Tuesday that it has raised $750 million through a privately placed mandatory convertible bond. The bonds were placed privately with a Luxembourg affiliate of Calyon, an investment-banking subsidiary of Credit Agricole, and will not be listed.

The bond will have a maturity of 17 months and ArcelorMittal will be entitled to call it in the year prior to maturity. The proceeds will be utilised to help fund investments in notes linked to shares of Turkey's Eregli Demir & Celik Fabrikalari and Australia's Macarthur Coal Ltd, both of which are held by ArcelorMittal subsidiaries.

The company added that the subsidiary might also invest in other financial instruments in consultation with investment bankers. "ArcelorMittal has no intention to sell its shares in Erdemir or Macarthur," it said.

In ArcelorMittal's consolidated financial statements, the mandatory convertible bond is expected to be recorded as minority interest and debt, the company said.

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