Germany-based global financial service provider Deutsche Bank AG has said that Australia's largest steelmaker BlueScope Steel Ltd may sell AU$1 billion (US$707 million) of shares to reduce its debt.
In their report relating to BlueScope Steel, Deutsche analysts led by Emily Behncke stated, "We believe it is realistic BlueScope would be prudent in assessing its balance sheet risk and would not rule out a AU$1 billion capital raising."
The report went on to say, "BlueScope needs to refinance AU$1.5 billion of debt by the 2012 financial year. A discounted share sale would reduce earnings per share in the year ending June 30, 2010 by 30 percent."
Deutsche Bank has forecast that BlueScope may make a loss in the quarter ending in June because of higher raw material prices.