Grupo Fonderia, the controller of the steel company Grupo Acerero (GASA), with a program authorized to issue up to MXN 5 billion ($266 million) in debt securities in the stock market, made its first placement for the equivalent of $27 million. The resources are to finance the construction of its new steel mill with 650,000 metric tons (mt) of slabs in the central Mexican state of San Luis Potosí.
The debt has a maturity date of June 25, 2027. The interest rate is 1.90 percentage points plus a leading interest rate (TIlE) for a term of 28 days, says the placement notice sent to investors.
The issue obtained ihvestment grade ratings from three credit risk evaluators. Example, HR Ratings awarded ": HR AA+" which represents "high credit quality". In fact, it is only one step below the highest rating of the so-called "investment grade". The titles carry a guarantee from the Inter-American Development Bank (IDB).
The project called Beskar will require $150 million of investment for an electric arc furnace and a continuous slab caster that will be used to produce plates. The progress of the new steel mill is more than 70 percent complete and technical tests will begin in April of next year and commercial production will begin in July.
In 2023, GASA was the fifth largest producer of rebar in Mexico (including imports). The leader was ArcelorMittal with 18.9 percent, followed by Ternium with 18.5 percent, DeAcero with 16.8 percent, Simec with 11.8 percent, GASA with 11.6 percent, Gerdau Corsa with 8.1 percent, Tyasa with 6.1 percent, Suacero with 5.7 percent. 2.5 percent for other participants.
Vietnam Steel by Hoa Sen Group
