ArcelorMittal arm issues $750m worth bonds

The wholly-owned Luxembourg subsidiary of ArcelorMittal has issued $750 million bond mandatorily convertible into preferred shares of such subsidiary.

The bond was placed privately with a Luxembourg affiliate of Calyon and will have a maturity of 17 months. ArcelorMittal will be entitled to call it in the year prior to maturity, said a company release.

The subsidiary will invest the proceeds of the issue and an equity contribution by ArcelorMittal in notes linked to shares of the listed companies Eregli Demir Ve Celik Fab. T. As (Erdemir) of Turkey and Macarthur Coal Ltd of Australia, both of which are held by ArcelorMittal subsidiaries.

The subsidiary may also, in agreement with Calyon, invest in other financial instruments.