Mumbai: ArcelorMittal has extended 30 million euros ($46.79 million) in emergency funding to Bulgaria's ailing steelmaker Kremikovtzi as the global steel giant looks to emerging economies for growth.

ArcelorMittal chairman Lakshmi Mittal and Ukrainian billionaire Kostyantin Zhevago had offered financial help to Kremikovtzi, Bulgaria's biggest steelmaker. Both companies were interested in taking over Kremikovtzi.

Pramod Mittal, the majority owner of Kremikovtzi and the younger brother of  Lakshmi Mittal, had put the mill up for sale after failing to provide funds for working capital and environmental upgrades.

Both bidders prefer the cash-strapped plant to go through the insolvency procedure before the sale is completed.

ArcelorMittal said it was willing to provide additional financial aid against Kremikovtzi's assets.

ArcelorMittal had earlier offered to invest $500 million in the plant over the next five years, once it acquires the mill's assets through a bankruptcy procedure.

Kremikovtzi had debt amounting to 1.67 billion levs as of end-2007.

Zhevago had offered to provide $90 million in working capital in exchange of joint management of Kremikovtzi for at least a year. Zhevago controls Ukrainian iron ore producer Ferrexpo.

Kremikovzi, which accounts for 10 per cent of Bulgaria's steel exports, said its management board would soon decide which of the two offers to accept.

A Bulgarian court had appointed two temporary receivers to Kremikovzi's plant after the company failed to honour its bonds.

In March, the holders of Kremikovtzi's 325 million euro bond asked for its immediate repayment, and threatened to take over the mill if it failed to pay them back.

Arcelor Mittal also announced plans to raise $3 billion (£1.5billion; 1.9billion euros) through a bond issue.

It will use the proceeds from the bonds sale to reduce its long-term debt, which has risen to more than $25 billion.

Arcelor Mittal group, which employs 310,000 worldwide, is targeting emerging markets for future growth and has recently signed deals in Argentina. Brazil, China, Egypt and Venezuela.

It predicted record results in the coming year from Asia, Africa and the former Soviet states.

Arcelor Mittal reported net profit for the first three months of the year of $2.37 billion (£1.22billion), up 5 per cent from the same quarter in 2007.

It also announced price hikes in Europe to pass on higher raw material costs.