XML 23 R16.htm IDEA: XBRL DOCUMENT
v3.22.2

SHORT-TERM AND LONG-TERM DEBT | 6 Months Ended
--- | ---
Jun. 30, 2022
Disclosure of detailed information about borrowings [abstract] |
SHORT-TERM AND LONG-TERM DEBT | SHORT-TERM AND LONG-TERM DEBT Short-term debt, including the current portion of long-term debt, consisted of the following:
| June 30, 2022 |  | December 31, 2021
Short-term bank loans and other credit facilities including commercial paper 1 | 1,183 |  | 888
Current portion of long-term debt | 1,373 |  | 836
Lease obligations | 163 |  | 189
Total | 2,719 |  | 1,913
1.The weighted average interest rate on short-term borrowings outstanding was 0.8% and 0.9% as of June 30, 2022 and December 31, 2021, respectively. Short-term bank loans and other credit facilities include short-term loans, overdrafts and commercial paper. In 2014, ArcelorMittal entered into certain short-term committed bilateral credit facilities. The facilities were subsequently extended annually. During the first half of 2022, two new facilities have been granted. As of June 30, 2022, the facilities, in total 0.6 billion, remain fully available. The Company has a commercial paper program enabling borrowings of up to €1.5 billion. As of June 30, 2022, the outstanding amount was 877. On July 27, 2022, the Company entered into a 2.2 billion bridge term facility agreement with a financial institution. The facility may be applied toward the purchase price for the intended acquisition of CSP, as well as the refinancing of its existing indebtedness and the payment of related fees, costs and expenses. The facility is available for 12 months from signing with two extension options of 6 months each at the borrower's discretion. The Company’s long-term debt consisted of the following:
| Year of maturity |  | Type of interest |  | Interest rate 1 | June 30, 2022 |  | December 31, 2021
Corporate |  |  |  |  |  |  |  |
5.5 billion Revolving Credit Facility | 2023 - 2025 |  |  |  |  | — |  |  | — |
€750 million Unsecured Notes | 2022 |  |  | Fixed |  | 3.13 | % | — |  |  | 551 |
€500 million Unsecured Notes | 2023 |  |  | Fixed |  | 0.95 | % | 381 |  |  | 415 |
€750 million Unsecured Notes | 2023 |  |  | Fixed |  | 1.00 | % | 778 |  |  | 848 |
€1 billion Unsecured Notes | 2024 |  |  | Fixed |  | 2.25 | % | 553 |  |  | 604 |
750 Unsecured Notes | 2024 |  |  | Fixed |  | 3.60 | % | 289 |  |  | 289 |
500 Unsecured Notes | 2025 |  |  | Fixed |  | 6.13 | % | 183 |  |  | 183 |
€750 million Unsecured Notes | 2025 |  |  | Fixed |  | 1.75 | % | 775 |  |  | 844 |
750 Unsecured Notes | 2026 |  |  | Fixed |  | 4.55 | % | 399 |  |  | 399 |
500 Unsecured Notes | 2029 |  |  | Fixed |  | 4.25 | % | 495 |  |  | 494 |
1.5 billion Unsecured Bonds | 2039 |  |  | Fixed |  | 7.00 | % | 671 |  |  | 671 |
1 billion Unsecured Notes | 2041 |  |  | Fixed |  | 6.75 | % | 428 |  |  | 428 |
EIB loan | 2032 |  |  | Floating |  | 1.56 | % | 291 |  |  | — |
EIB loan | 2025 |  |  | Fixed |  | 1.16 | % | 167 |  |  | 215 |
Schuldschein loans | 2025-2027 |  | Fixed/Floating |  | 1.5% - 3.0% | 753 |  |  | — |
Other loans | 2023 |  |  | Fixed |  | 3.10% | 73 |  |  | 142 |
Other loans | 2029-2035 |  | Floating |  | 0.6% - 2.3% | 247 |  |  | 273 |
Total Corporate |  |  |  |  |  | 6,483 |  |  | 6,356 |
Americas |  |  |  |  |  |  |  |
Other loans | 2022 - 2030 |  | Fixed/Floating |  | 0.0% - 10.7% | 65 |  |  | 72 |
Total Americas |  |  |  |  |  | 65 |  |  | 72 |
Europe, Asia & Africa |  |  |  |  |  |  |  |
EBRD Facility | 2024 |  |  | Floating |  | 4.2% - 4.5% | 59 |  |  | 82 |
Other loans | 2022 - 2029 |  | Fixed/Floating |  | 0.0% - 5.6% | 127 |  |  | 123 |
Total Europe, Asia & Africa |  |  |  |  |  | 186 |  |  | 205 |
Total |  |  |  |  |  | 6,734 |  |  | 6,633 |
Less current portion of long-term debt |  |  |  |  |  | (1,373) |  |  | (836) |
Total long-term debt (excluding lease obligations) |  |  |  |  |  | 5,361 |  |  | 5,797 |
Long-term lease obligations 2 |  |  |  |  |  | 708 |  |  | 691 |
Total long-term debt, net of current portion |  |  |  |  |  | 6,069 |  |  | 6,488 |
1.Rates applicable to balances outstanding at June 30, 2022, including the effect of decreases or increases following upgrades or downgrades, respectively. For debt that has been redeemed in its entirety during first half of 2022, the interest rate refers to the rates at the repayment date. 2.Net of current portion of 163 and 189 as of June 30, 2022 and December 31, 2021, respectively. See note 11 for further information regarding leases. Corporate Main credit facility On December 19, 2018, ArcelorMittal signed an agreement for a 5.5 billion revolving credit facility (the "Facility"). This Facility replaced the 5.5 billion revolving credit facility dated April 30, 2015, which was amended and extended on December 21, 2016. The agreement incorporated a single tranche of 5.5 billion maturing on December 19, 2023, with two one-year extension options (i.e. the options to extend are in the first and second years end of 2019 and end of 2020). During the fourth quarter of 2020, ArcelorMittal executed the second option to extend the facility to December 19, 2025 after having executed the first option in the fourth quarter 2019. The extension was completed for 5.4 billion of the available amount, with the 0.1 billion remaining with a maturity of December 19, 2023. On April 13, 2021 the revolving credit facility was amended so that the leverage ratio financial covenant will no longer be applicable in the event that the Company obtains an investment grade long-term credit rating (with a stable outlook) from two rating agencies. On April 27, 2021, the revolving credit facility was amended so that the margin payable increases or decreases depending on the Company’s performance against two metrics measured annually against pre-defined targets with respect to its environmental and sustainability performance (CO2 intensity of the Company’s European operations and the number of facilities which have been certified by ResponsibleSteel™). The Facility may be used for general corporate purposes. As of June 30, 2022, the 5.5 billion revolving credit facility was fully available. The Company makes drawdowns from and repayments on this Facility in the framework of its cash management. On September 30, 2010, ArcelorMittal entered into a 500 revolving multi-currency letter of credit facility (the “Letter of Credit Facility”). The Letter of Credit Facility is used by the Company and its subsidiaries for the issuance of letters of credit and other instruments. The terms of the letters of credit and other instruments contain certain restrictions as to duration. The Letter of Credit Facility was amended on October 26, 2012 and on September 30, 2014 to reduce its amount to 450 and to 350, respectively. On July 31, 2019, the Company refinanced its Letter of Credit Facility by entering into a 350 revolving multi-currency letter of credit facility, which matures on July 31, 2022. On June 25, 2021 the Letter of Credit Facility maturity was extended to July 31, 2024. Bonds On January 14, 2022, at maturity, ArcelorMittal repaid all of the outstanding €486 million (551) of its €750 million Fixed Rate Notes due 2022. European Investment Bank (“EIB”) loan On June 2, 2021, ArcelorMittal signed a €280 million finance contract with the European Investment Bank for funding of research, development and innovation projects in Europe over the period of 2021-2023. This operation benefits from a guarantee from the European Union under the European Fund for Strategic Investments. On March 16, 2022, ArcelorMittal draw down the facility in full. As of June 30, 2022, €280 million (291) was outstanding. On December 16, 2016, ArcelorMittal signed a €350 million finance contract with the European Investment Bank in order to finance European research, development and innovation projects over the period 2017-2020 within the European Union, predominantly France, Belgium and Spain, but also in the Czech Republic, Poland, Luxembourg and Romania. This operation benefits from a guarantee from the European Union under the European Fund for Strategic Investments. As of June 30, 2022, €160 million (167) was outstanding. Other loans On May 4, 2022, ArcelorMittal completed the offering of a €346.5 million variable rate loan, a €24.5 million fixed rate loan, a €263 million variable rate loan and a €66 million fixed rate loan in the German Schuldschein market. On May 6, 2022, the company further completed the offering of a €25 million fixed rate loan. The proceeds of these issuances were used for general corporate purposes. As of June 30, 2022, €725 million (753) was outstanding. On December 21, 2018, the Company entered into a facility agreement with a group of lenders for €235 million to finance the construction of a new hot strip mill in Mexico. This facility became effective upon issuance of a guarantee by the Oesterreichische Kontrollbank AG in March 2019. The last installment under this agreement is due 8.5 years after the starting date of the credit facility (which means the earlier of (a) the date of issue of the provisional acceptance certificate for the hot strip mill and (b) June 30, 2021). The outstanding amount in total as of June 30, 2022 was €152 million (157). On July 2, 2020, ArcelorMittal entered into an agreement for financing with a financial institution for net proceeds of CAD174 million (128) with repayment over several dates in 2021 and 2022. As of June 30, 2022, the agreement was fully repaid. On November 29, 2021, ArcelorMittal entered into an agreement for financing with a financial institution for net proceeds of CAD130 million (105) with repayment over several dates in 2021, 2022 and 2023. As of June 30, 2022, CAD95 million (73) remained outstanding. Europe, Asia and Africa On December 21, 2017, ArcelorMittal Kryvyi Rih entered into a 175 loan agreement with the European Bank for Reconstruction and Development (ERBD) in order to support the upgrade of its production facilities, energy efficiency improvement and environmental impact reduction. The loan agreement also provides for an additional 175 in loan facilities which are currently uncommitted. As of June 30, 2019, 175 was fully drawn. As of June 30, 2022, 59 was outstanding. On May 25, 2017, ArcelorMittal South Africa signed a 4.5 billion South African rand revolving borrowing base finance facility maturing on May 25, 2020. The facility was amended and extended on July 26, 2019 and now matures on July 26, 2022. Any borrowings under the facility are secured by certain eligible inventory and receivables, as well as certain other working capital and related assets of ArcelorMittal South Africa. The facility is used for general corporate purposes. The facility is not guaranteed by ArcelorMittal. As of June 30, 2022, 1.2 billion South African rand (74) was drawn. Other Certain debt agreements of the Company or its subsidiaries contain certain restrictive covenants. Among other things, these covenants limit encumbrances on the assets of ArcelorMittal and its subsidiaries, the ability of ArcelorMittal’s subsidiaries to incur debt and the ability of ArcelorMittal and its subsidiaries to dispose of assets in certain circumstances. Certain of these agreements also require compliance with a financial covenant. The other loans relate to various debt with banks and public institutions. Hedge of net investments A portion of the Company's of euro denominated debt (€4,512 million as of June 30, 2022) is designated as a hedge of certain euro denominated investments (€9,934 million as of June 30, 2022) in order to mitigate the foreign currency risk arising from certain euro denominated subsidiaries' net assets. The risk arises from the fluctuation in spot exchange rates between the U.S. dollar and euro, which causes the amount of the net investments to vary. The hedged risk in the hedge of net investments is a risk of a weakening euro against the U.S. dollar that will result in a reduction in the carrying amount of the Company's net investments in the subsidiaries subject to the hedge. The euro denominated debt is designated as a hedging instrument for the change in the value of the net investments that is attributable to changes in the euro/U.S. dollar spot rate. To assess hedge effectiveness, the Company determines the economic relationship between the hedging instrument and the hedge item by comparing changes in the carrying amount of the debt portfolio that are attributable to a change in the spot rate with changes in the net investments in the foreign operations due to movements in the spot rate. For the six months ended June 30, 2022, the Company recognized 363 foreign exchange gains arising on the translation of the euro denominated debt designated as a hedge of the euro denominated net investments in foreign operations and as a cash flow hedge in other comprehensive income within the foreign exchange translation reserve.

X
- Definition The disclosure of borrowings. [Refer: Borrowings] + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Name IAS -Number 1 -IssueDate 2021-01-01 -Paragraph 10 -Subparagraph e -URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IAS&num=1&code=ifrs-tx-2021-en-r&anchor=para_10_e&doctype=Standard -URIDate 2021-03-24 + Details
Name: | ifrs-full_DisclosureOfBorrowingsExplanatory
Namespace Prefix: | ifrs-full_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | ifrs-full_DisclosureOfDetailedInformationAboutBorrowingsAbstract
Namespace Prefix: | ifrs-full_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration