ArcelorMittal raises 1.1 bn euro through private placement

LONDON: The world's largest steel maker, ArcelorMittal, has raised 1.1 billion euro (about $1.5 billion) through issue of convertible bonds, a move which will help in strengthening the company's liquidity position.

"The convertible bond brings multiple benefits to the company, enabling us to extend the maturity of our debt and diversify our debt structure, as well as further enhancing our liquidity," ArcelorMittal CFO Aditya Mittal said in a statement today.

The company said it was pleased at the "positive" response received from the investors to the offer amidst the prevailing economic climate.

"To receive such a positive response to the issue in the current economic climate is particularly pleasing, and we believe, represents a strong indication of confidence in ArcelorMittal," he said.

The 1.1-billion euro bonds convertible and/or exchangeable into new and/or existing shares are due on April 1, 2014, the statement said.

The steel behemoth yesterday launched a 750 million euro convertible bond private placement as part of its strategy to diversify its sources of funding and to lengthen its debt maturity profile. The amount was later hiked to 1.1 billion euro.