Press Trust of India reported that ArcelorMittal plans to raise USD 650 million through issue of securities for meeting general financing needs and retiring debt.

ArcelorMittal in a statement said that “The securities have no fixed maturity date and are deeply subordinated. They bear interest at 8.75% per annum, subject to the right of the company to defer interest payments.”

However, ArcelorMittal has an annual steel production capacity of around 92 million tonnes.

It said that the securities would be accounted for as equities in the company’s consolidated financial statements, adding that the initial coupon rate would be reset periodically over the life of the securities.

The statement said that “The proceeds of the issue will be used for the general financing purposes of ArcelorMittal and its consolidated subsidiaries including the repayment of existing debt.”

Source - Press Trust of India

(www.steelguru.com)