Ferrexpo is not to issue Eurobonds in coming months

12 February 2017

As iron ore price index remains at close to USD 80/t level, Ferrexpo does not plan to issue new Eurobonds in the near term

CEO of the company, Mr. Konstantin Zhevago, in its interview to Ukrainian magazine Novoye Vremya stated that the company has no plans for Eurobonds issuance for the nearest future. Some time ago management of the company considered such possibility to refinance maturing debt, but as iron ore price index remains at local highs, Ferrexpo has improved its free cash flow (with current iron ore price monthly EBITDA is estimated at about USD 50M level).

So, taking into account USD 145M cash balance of the company as of 31.12.15, it is not to have any problems to repay its debt in Y2017 (slightly more than USD 200M of debt principal to be repaid in current year), while perspectives for Y2018 (USD 320M of debt to be repaid) look much better than before despite expected by market participants and analysts decline in iron ore price to USD 50-60/t level (as of 10.02.17 index stood at above USD 86/t).

Recently S&P Global Ratings raised its long-term corporate credit rating of Ferrexpo Plc to 'B-' from 'CCC' and its short-term rating to 'B' from 'C', noting significant improvement of liquidity position of the company.

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Wheat CBOT
Iron Ore
Crude Oil

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