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Kazakh steelmaker Qarmet issues $500 million of bonds at Astana Exchange

The Astana International Trade website reported that Kazakhstan's steelmaker Qarmet had placed bonds for seven years worth $500 million at a coupon of 10.2%.

The company has issued 5 million bonds at a par of $100. This is the second issue of this kind since it placed $500 million in bonds priced at 11% annually back in September. Trading will start on December 5.

Qarmet will use $150 million for refinancing existing loans, and $350 millions to finance investment projects. This includes reimbursement of capital expenditures and refinancing debts.

Qarmet, owned by ArcelorMittal until 2023, was sold to Qazaqstan Investment Corporation, a state-owned fund, for $286m. Qarmet was acquired by Kazakh businessman Andrei Lavrentiev. He is the chairman of Allur automaker.

Assets of the company include the Karaganda Metallurgical Plant and a number of coal mines and power plants.

Qarmet says it plans to produce 9 million tonnes per year of coal and 5 millions tonnes per year of iron ore by 2028. Reporting by Mariya Goreyeva, Writing by Lucy Papachristou, Editing by Andrew Osborn

(source: Reuters)