Bonds issued by Cia. Siderúrgica Nacional SA are among the best performers in emerging markets following the appointment of its new CEO, as investors bet the company's ambitious asset-sale program will finally move forward and allow the steelmaker to reduce its heavy debt load.

Former Vale SA boss Fabio Schvartsman was announced as new CEO on Sept. 2 — a move seen by investors and bank creditors as emblematic of a new phase for the steel giant, which has been led by Benjamin Steinbruch for two decades. The naming of a person outside the controlling family was seen as a win, giving power to someone that will finalize deals that have been in the works for years.

"It's a positive 'symbolic' move," said Nicolas Giannone, an analyst at Balanz. While Steinbruch will still be Chairman, "it does put a new face to a 'new' CSN, and reaffirms their intention to delever and streamline the business."

Bonds issued by the company have returned in the period since the announcement about 5% on average, while a broader gauge of emerging-market corporate debt handed a 0.5% loss. The sale of the cement unit is more advanced, and a deal could be announced in the coming weeks, according to people familiar with the matter, who asked not to be identified discussing private information. Huaxin, Votorantim and Polimix each made binding offers of about 11 billion reais, the people said — that's below the 15 billion reais CSN sought for the asset, though the company may accept the lower price, they added. The unit is pledged as a collateral to banks in a loan of at least $1.2 billion provided in March, people familiar said earlier this year.

CSN is also selling Stahlwerk Thuringen, or SWT, a steel unit in Germany it bought in 2012 for $634 million, the people said, asking not to be named because negotiations are private. CSN is also receiving bids for some infrastructure assets and may sell them piecemeal instead of the minority stake in the infrastructure business combined it had sought to unload, the people added. Shareholders of CSN Mineração are also mulling increasing their stake given depressed valuations, buying more from the controlling holding, the people said without specifying which holders. Itochu Corporation is the company's second biggest shareholder, with a 10.85% bought in 2024 for 4.42 billion reais, while Japão Brasil Minério de Ferro Participações Ltda is the third biggest, with a 9.35% stake, according to the company. Japão Brasil is an Itochu subsidiary. Votorantim declined to comment. Representatives for CSN, CSN Mineração, Embu SA, Huaxin's unit in Brazil, and Polimix didn't reply to a request for comment. Itochu, the owner of Japão Brasil, said in a message that it doesn't comment on market rumors, speculation, or matters relating to potential changes in its investment holdings unless and until disclosure is required. Steinbruch is seen as a tough negotiator in asset sales, known to ask for better conditions. The last time CSN sold the control of a business was in 2018, when it received $400 million for its CSN LLC US steel operation. Investors are largely bullish his replacement will be able to push the divestment forward given Schvartsman's decades of experience leading some of Brazil's largest industrial and natural-resource companies, including Vale and paper maker Klabin SA. Cesar Fernandez, a partner at Alpha Credit Advisors Ltd., said the new CEO has the ability to accelerate CSN's asset sale program and rein in "a leverage path that has gone the wrong way for years." He will be expected to deliver quickly. Even after their recent surge, CSN's dollar bonds are still nursing an average loss of about 11.2% in 2026. Earlier this year, investors dumped the steelmaker's notes on fears it could become the next Brazilian company pushed to the brink by the nation's double-digit interest rates. It also continues to bleed cash. Last quarter CSN posted an adjusted net loss of 773 million reais ($151.7 million), its 10th consecutive quarterly loss.