ArcelorMittal hits $3bn rights issue

Steel giant ArcelorMittal said Tuesday it had successfully completed a three-billion-dollar (2.64-billion-euro) rights issue aimed at cutting its debt pile amid a global steel glut.

The group, the world's largest steelmaker, announced a total subscription rate of 126.9 percent and issued 1.6 billion new shares an issue after strong investor support.

ArcelorMittal announced the rights issue in February, saying it would use net proceeds to reduce indebtedness and bolster its balance sheet.

The company posted a $6.7 billion loss in the fourth quarter amid falling commodity prices for a 2015 net loss of $7.95 billion.

Over half of the loss emanated from a writedown in the value of its mining operations to reflect the lower value of its iron ore.

Chief executive Lakshmi Mittal said in February that "2015 was a very difficult year" for the industry, given price falls on excess capacity in China.

But he added that the mining business had focused on adapting to lower prices and has reduced cash costs by 20 percent, beating an initial target of 15 percent.

ArcelorMittal said following the rights issue its share capital will consist of 3,065,710,869 shares without nominal value and added surplus shares will be allocated to holders that submitted oversubscription requests on a pro-rata basis.

Delivery of new shares is expected to take place next Monday but are expected to be admitted to trading on European exchanges from Friday and from Monday on the New York Stock Exchange.