Gerdau confirms US$600m perpetual bond issue

Thursday, September 15, 2005

Brazilian steel company Gerdau confirmed on Thursday a US$600 million perpetual bond issue.

The yield is 8.75% annually and interest will be paid on September 2, December 2, March 2 and June 2.

The operation was lead and managed by HSBC and Citigroup.

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Gerdau has the option to redeem the bonds at face value from September 2, 2010.

Demand surpassed US$3.5bn and for this reason the placement was raised from an initial US$300mn, according to the company.

Of the total issued, 46% went to investors from Asia, 32% from Europe, 20% from the US and 2% from Brazil.

By Daniela Milanese