"The securities have no fixed maturity date and are deeply subordinated. They bear interest at 8.75 per cent per annum, subject to the right of the company to defer interest payments," ArcelorMittal said in a statement.
ArcelorMittal has an annual steel production capacity of around 92 million tonnes.
The securities would be accounted for as equities in the company's consolidated financial statements, it said, adding the initial coupon rate would be reset periodically over the life of the securities.
The reset of the rate would be done in the fifth year and subsequently every five years thereafter.
"The proceeds of the issue will be used for the general financing purposes of ArcelorMittal and its consolidated subsidiaries, including the repayment of existing debt," the statement issued yesterday said.
There will be a step up in interest of 25 basis points on the second reset date and a subsequent step up of 75 basis points 15 years later.
ArcelorMittal said it would be entitled to buy back the securities in the fifth year, 10th year, and on subsequent interest payment dates.
"The company will also have the option to redeem the securities upon specific accounting, tax, rating agency or change of control events," the statement said.