Tata Steel to refinance $1.5bn offshore debt
Tata Steel’s Singapore arm T S Global Holdings Pte raised $1.5 billion debt to settle outstanding loans, the company said in a statement.
Tata Steel group executive director-finance and corporate Kaushik Chatterjee said, “Tata Steel actively reviews all its financing options and seeks to continuously optimise its debt based on market conditions”.
The loan facilities include $750 million in two parts for a tenure of five and six years.
The loan facilities have been contracted with a group of 16 Mandated Lead Arrangers: Australia and New Zealand Banking Group, Axis Bank, Bank of America N.A., Bank of Tokyo-Mitsubishi UFJ., BNP Paribas, Citigroup Global Markets Asia, Credit Agricole Corporate and Investment Bank, Deutsche Bank AG, Emirates NBD Capital., First Gulf Bank RISC, HDFC Bank, ICICI Bank, National Bank of Abu Dhabi PJSC, Societe Generale, Standard Chartered Bank and Sumitomo Mitsui Banking Corporation.
Tata Steel’s operations in India and Europe have been affected by global weakness in steel demand and steel prices.
“The new loan facilities provide significantly greater flexibility in their terms and conditions and provide savings in cost, besides extension of tenor”.
Tata Steel has also been raising funds to refinance the debt linked to the company’s $13 billion acquisition of UK’s Corus in 2007.
The stock closed at Rs 243.50, up 2.46 per cent on BSE.