Fixed Income
April 18, 2012
Metinvest has reported outstanding preliminary results for FY11: revenue was up by 52% YoY to USD 14.2bn, and the group’s EBITDA rose by 40% to USD 3.57bn, fueled by its burgeoning iron ore segment. Net debt/EBITDA remained low at 0.9x, edging down from 1.1x as of end¬2010. Given the strong FY11 results, we reaffirm our positive view on Metinvest’s 2015 and 2018 bonds. METINV-15s are now trading with what we view as an unjustifiably high yield spread of 445bps over the 2015 Eurobonds of Russian M&M group Evraz.
