Daily Insight-In the spotlight: new VAT bond issue being discussed, Ferrexpo and iron ore prices trend

Ferrexpo is planning to finalize an agreement on raising a $300m syndicated loan within the next two weeks, Debtwire reports. The amortising pre-export facility will likely have a 3.5-year maturity, with an expected interest rate of 500bps over Libor. The loan\'s proceeds will be used to pay off Ferrexpo\'s previous pre-export loan of $230m, which pays 700bps over Libor and matures in January, 2013. At the same time, Ferrexpo is still looking at the possibility of a Eurobond issue; however, with the size being lowered from the previously announced $500m, now that the company is close to attracting a new loan. Eurobond proceeds will be used by Ferrexpo to explore iron ore reserves, and the company will be looking for more attractive pricing, targeting a yield below 10%.