Report on draft decree regarding floating of BMZ bonds

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Belarusian Steel Works (BMZ trademark) will float forex bonds worth $240.5 million. The move is stipulated by the draft decree presented before Belarus President Aleksandr Lukashenko by Deputy Prime Minister of Belarus Vladimir Semashko and BMZ Director General Anatoly Savenok on 9 November.

The interest rate on the bonds will be up to 8.5% per annum, with the maturity period of five years. Aleksandr Lukashenko spoke in positive terms about the draft decree. The document is supposed to be signed soon.

The head of state asked in detail about the state of affairs in the company, about the changes that have happened since he last visited the company in September 2015. Aleksandr Lukashenko reminded that back then he promised BMZ’s operation would be reviewed to address emerging problems.

Aleksandr Lukashenko remarked that the bonds are supposed to ease up the financial pressure on the enterprise and produce some way forward in view of the current financial situation. The President asked what the management intended to do and what the management was concerned about. The agreement to float the bonds has been reached with Belarusian banks. “The risks are smaller here. Those are our banks. We will deal with problems if any errors crop up. Nevertheless, such issues may emerge in the future,” stated the head of state.

The President was told that the state of affairs with regard to foreign markets remained difficult. The export growth rate has not slowed down. In physical terms in January-October 2015 the figure totaled 111.3% as against the same period of last year. In money terms the export growth rate has dropped to 78.8%. The floatation of the bonds will be one of the ways to prop up the volume of operating assets. Apart from that, the company intends to use the money to ease up the burden of servicing the loans borrowed to implement investment projects. At the same time BMZ has managed to keep its position on the markets, including the Middle East and Africa. The enterprise continues shipping more and more to Europe. Some accomplishments have been secured with regard to the USA.