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Metinvest continues to fulfill its debt obligations despite war

KYIV. March 6 (Interfax-Ukraine) – Metinvest B.V. (the Netherlands), the parent company of the international vertically integrated mining and metals group of companies, continues to fulfill its debt obligations, including to bondholders, despite the war in Ukraine.

“Metinvest continues to service its loans and borrowings, including planned bond payments. In 2022, the group bought back and then immediately canceled about $48 million of various bonds, including 2023 bonds worth $24 million through a tender offer,” the group said in Metinvest’s presentation at the 14th annual J.P. Morgan Global Emerging Markets corporate conference on Monday.

At the same time, it is added that on July 29, 2022, a number of subsidiaries of Metinvest B.V. have been designated as unrestricted subsidiaries, as determined by the terms and conditions for the purposes of each note. They included Illich Steel Mill and Azovstal, as a result of which their guarantees were automatically terminated.

It is also reported that the war in the country provoked a downward revision of credit ratings for Ukraine and Ukrainian companies, including Metinvest.

The company’s total debt as of the end of June 2022 was $2.223 billion (as of December 31, 2021 – $2.242 billion), net debt was $1.763 billion ($1.076 billion).

For bonds, the company must repay $145 million at 7.75% per annum maturing in April 2023, EUR296 million at 5.625% per annum due in June 2025, $494 million at 8.5% per annum due in April 2026, $332 million at 7.65% per annum with maturity in October 2027, $500 million at 7.75% per annum with maturity in October 2029.

Metinvest is a vertically integrated group of mining and metallurgical enterprises. Its enterprises are located in Ukraine – in Donetsk, Luhansk, Zaporizhia and Dnipropetrovsk regions, as well as in European countries.

The main shareholders of the holding are SCM Group (71.24%) and Smart Holding (23.76%), which jointly manage it.

Metinvest Holding LLC is the management company of Metinvest Group.