CSN may reduce debt by $1.4 billion with proposed mining IPO

Thursday, 10 September 2020 20:54:53 (GMT+3)   |   Sao Paulo

Brazilian steelmaker Companhia Siderurgica Nacional (CSN) could reduce its debt by $1.4 billion (BRL 7.5 billion) with the expected IPO of its mining business, analysts estimated this week.

The $1.4 billion figure would account for a 25 percent stake at CSN’s mining business being sold through an IPO, analysts from Itau BBA said. The analysts considered the USD/BRL at a BRL 5 rate.

The Itau BBA analysts estimated CSN’s iron ore business to have an estimated BRL 30 billion value ($5.6 billion), out of which 25 percent would reach $1.4 billion (BRL 7.5 billion).

CSN’s total debt in Q2 this year reached BRL 33 billion ($6.2 billion).

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