ArcelorMittal issues $750mn convertible bonds

LUXEMBOURG: Global steel giant ArcelorMittal on Tuesday said it has raised $750 million (Rs 3,500 crore) through issue of convertible bonds by its wholly-owned arm based in Luxembourg.

The proceeds from the bonds 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 bonds have been privately placed with a Luxembourg affiliate of Caylon, an investment-banking subsidiary of Credit Agricole.

"The bonds will have a maturity of 17 months and ArcelorMittal will be entitled to call it in the year prior to maturity," the company said in a statement.

The company added that the subsidiary may also invest in other financial instruments in consultation with investment banker.

"ArcelorMittal has no intention to sell its shares in Erdemir or Macarthur," the statement added.

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