Steel maker ArcelorMittal SA closes R4.5bn loan facility
The move is part of SA’s largest steel producer balance sheet restructuring
ArcelorMittal SA has closed a revolving R4.5bn structured commodity-trade finance facility over 36 months to finance working capital, as part of its balance sheet restructuring. The announcement came after the group’s annual general meeting in Joburg on Wednesday. SA’s largest steel producer said the facility had been signed between itself and subsidiary Saldanha Steel, and Deutsche Bank, Absa and other lenders. The amount is R1bn more than the R3.5bn it said in April it would borrow as part of a new capital-raising plan. But it is not part of a recent R4.5bn rights issue that had lowered debt considerably. The group said the facility was increased to R4.5bn as it was oversubscribed. The interest rate was confidential.