Metinvest B.V. is assessing investor appetite for a new bond issuance after the Ukrainian mining and metals group failed to reach an agreement on debt restructuring with a group of existing bondholders ahead of an April maturity, according to people familiar with the matter.
Metinvest representatives are meeting with fund managers in London as part of a roadshow organized by Deutsche Bank AG, the sources said. The company is also planning meetings with U.S. investors. The sources requested anonymity as the information is confidential.
The meetings follow last month’s successful bond sale by agricultural group MHP SE, which marked a revival of Ukraine’s corporate bond market after Russia’s invasion. Widespread destruction and supply-chain disruptions had made new debt issuance prohibitively expensive over the past four years. MHP is considered one of the safer Ukrainian issuers due to its assets outside the country. No specific transaction is currently being discussed for Metinvest, the sources said, adding that the meetings are intended to update investors on recent performance and gauge demand for new bonds. A Metinvest spokesperson declined to comment, while a Deutsche Bank representative did not respond to a request for comment.
Finding a solution is critical, as the company must repay $428 million in bonds in April. Borrowers typically refinance debt a year or more ahead of maturity, but Ukrainian issuers operating under wartime conditions often leave such steps until the last moment. Around $3 billion in bonds are due to mature this year.
Metinvest had been in talks with a group of bondholders on extending the April bond and two other issues. Those negotiations ended without an agreement this week, and the company said it would consider alternative options, including market-based refinancing.
Despite the breakdown in restructuring talks, Metinvest’s bonds rose this week, with analysts and investors noting that the parties are likely making progress and that the chances of reaching an agreement before maturity remain high.
Russia’s war in Ukraine has significantly affected Metinvest, destroying some assets and increasing costs. Still, MHP’s bond sale showed that investors are willing to buy new debt from certain Ukrainian companies. MHP attracted more than $2.25 billion in demand for a $450 million issue and subsequently returned to the market to increase the size of the deal.
