Swiss-headquartered resources company Ferrexpo, whose main interests are in Ukrainian iron ore assets, has canceled a planned $500 million bond sale to refinance debt because costs were too high, Bloomberg has reported.
According to a Ferrexpo spokesman, the company currently has a robust liquidity position and other available sources of finance.
Ferrexpo is looking for cash to fund new grinding facilities and a second flotation plant as it seeks to produce pellets with higher iron ore content. The company is also aiming to increase output at its Lavrikovskoe deposit by extending the existing pit there.
Accordingly, Ferrexpo will continue to review the international debt capital markets as a potential source of financing subject to market conditions and its financing requirements.