Mondi in €500m Eurobond issue

29th Mar 2010 08:17

Loss making South African paper and packaging group Mondi is to reduce its bank debt through the issue of a €500m Eurobond.The Eurobond will mature in April 2017 and carries a coupon of 5.75%. The Eurobond will be issued under Monday's medium term note programme which carries a rating of Baa3 from credit rating agency Moody's and is rated BB+ by Standard and Poor's. Both ratings have a stable outlook.At the end of 2009 Mondi had net debt of €1,517m. Interest on net debt increased marginally from €148m in 2008 to €151m, even though the level of debt declined from €1,690m at the end of 2008. This was largely due to the group's rouble debt resulting from capital expenditure in Russia at a time of exceptionally high interest rates at the height of the credit crunch. At the end of 2009 around 24% of Mondi's debt was drawn in euro, 23% in South African rand and 15% in Russian rouble.