Brazilian steelmaker Companhia Siderurgica Nacional (CSN) said it expects to raise BRL 8 billion ($2.3 billion) through asset sales as a way to reduce its debt, the company’s CEO, Benjamin Steinbruch, said this week.
The company said earlier this week it abandoned plans to sell its Sepetiba Tecon terminal; however, the company is still looking for a 20-25 percent partner for its Congonhas Minerios iron ore business.
“The number we’re targeting for reducing our leverage [debt to finance] rate is about BRL 8 billion,” the executive said.
“People say that I don’t like selling [assets.] I really don’t, that’s a tradition at CSN. Up to date, we just bought assets, but we broke this [tradition] by selling Metalic. We want to reduce our debt,” he noted in a conference call with analysts.
Despite mentioning the BRL 8 billion target, the executive didn’t give a timeline for the company to do so.
CSN is said to have CBSteel as a potential partner for its Congonhas Minerios. It could buy a 20-25 stake in the business. CSN has an 87 percent stake in Congonhas.
However, CSN still needs to talk with its other partners at Congonhas, including Itochu Corporation, JFE Steel Corporation, Posco, Kobe Steel, Nisshin Steel and China Steel Corporation, which have the right to make a counter proposal to increase their stake at Congonhas.