Kazakh steelmaker Qarmet places $500 million bonds on Astana exchange

Kazakhstan-based steelmaker Qarmet placed seven-year bonds worth $500 million with a coupon rate of 10.2% on the Astana International Exchange, according to a statement on the bourse's website on Thursday. Qarmet was until 2023 owned by ArcelorMittal, the world's second-largest steel producer, when it was sold for $286 million to Qazaqstan Investment Corporation (QIC), a state-owned private equity fund.

Kazakhstan-based steelmaker Qarmet placed seven-year bonds worth $500 million with a coupon rate of 10.2% on the Astana International Exchange, according to a statement on the bourse's website on Thursday. The issue consists of 5 million bonds with a par value of $100, the second such issue since the company placed bonds worth $500 million at 11% per annum in September. Trading will begin on December 5.

Qarmet plans to use $150 million to refinance existing loans and $350 million to finance investment projects, including reimbursement of previously incurred capital expenditure and to further refinance debts. Qarmet was until 2023 owned by ArcelorMittal, the world's second-largest steel producer, when it was sold for $286 million to Qazaqstan Investment Corporation (QIC), a state-owned private equity fund. Kazakh businessman Andrei Lavrentiev, chairman of automaker Allur, became Qarmet's new shareholder.

The company's assets include the Karaganda Metallurgical Plant, several coal mines, power plants, the Lisakovsky Mining and Processing Plant, the Aktau Pipe Plant, ferromanganese mines and several auxiliary enterprises. Qarmet plans to reach production of 9 million tonnes of coal per year and 5 million tonnes of iron ore concentrate per year by 2028, it says.

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