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).