OREANDA-NEWS. April 26, 2010. The Metinvest’s Eurobonds placement road show starts in Paris today. This is the second placement initiated by SCM’s divisions in the previous ten days.  DTEK, the power division, was the first to break the news of the successful placement of its USD 500mn loan.  Now it is the Metinvest’s turn. The amount of the loan is not disclosed yet, but it is supposed to amount between USD 500mn to USD 1bn. The purpose of the loan is to redeem the obligations due currently.

Millennium Capital: there are no doubts about this issue placement being successful, in view of the issuing Holding’s good reputation as well as its financial performance (specifically, its Net Debt to EBITDA ratio is 1.67, being the smallest indicator of this kind among metal and mining CIS companies in 2009). But, as Millennium Capital has written earlier (see Trade Idea “Expectations of dividends”), Millennium Capital sees the Eurobonds placement as the first step towards the IPO of the Holding, which had to be postponed because of the current crisis. In this context, we see this news as POSITIVE for all the companies in the Holding structure, including Azovstal <AZST UK BUY>, Avdiivka Coke <AVDK UK BUY>, Enakievo Steel <ENMZ UK BUY>, and others.