Luxembourg-based steel giant ArcelorMittal has announced that it will issue $3.5 billion common shares to reduce its debt significantly. With the share issuance, the company aims to reduce its debt to $17 billion by the end of June this year from an estimated net debt of $22 billion as of the end of 2012.

"We have consistently said that reducing net debt is a priority for the company. This transaction, supplemented by proceeds from ongoing asset disposals, the announced reduction in dividends and continued cost saving initiatives, will significantly lower our net debt and accelerate the achievement of a medium-term net debt target of $15 billion." said Lakshmi Mittal, ArcelorMittal CEO.

As SteelOrbis previously reported, last November the credit ratings agency Moody's downgraded ArcelorMittal to junk status due to the steelmaker's debt level.