London-listed Ukrainian iron ore producer Ferrexpo plans to enter the Eurobond market, Alfa Bank said in a research note on Tuesday.
"Ferrexpo … is seeking to place its debut five-year Eurobond," it said. "The company was planning to tap the market earlier this year but has postponed the placement due to unfavourable market (conditions)."
Alfa Bank gave no other details of the planned issue.
Instead of issuing a Eurobond Ferrexpo took out a $350 million pre-export finance facility in September. Alfa said the bond was likely to trade at a premium to that of another Ukrainian metals company, Metinvest. "We see a 70-100 bps (basis points) premium to the Metinvest eurobond (currently traded at 8.25 percent yield) as fair," it said, citing factors such as Ferrexpo’s smaller size, focus on a single commodity and leverage.
