The Russian-owned Slovenian Steel Group, SIJ, has completed a EUR 20m issue of commercial papers as part of an exercise of expanding sources of financing.
The nine-month papers with an annual interest rate of 2.2% were in high demand, said SIJ, with demand outstripping supply by 60%.
In addition to expanding its financial sources, the group said that the issue will also help the group optimise financing costs.
The issue comes four months after the group, which is owned by Dilon, a company controlled by the Zubitsky family, carried out a EUR 43m issue of five-year bonds. Short-term financial sources represent about one-sixth of the group’s total financial debt and are used mostly as a means of balancing seasonal fluctuations in operating capital.
“The issue of commercial papers represents a second step in the development of the company as a publicly traded company. We are more than happy with this process, given the interest and trust expressed by investors in the group,” CEO Anton Chernykh said.
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