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Bhushan Steel secures $ 258-mn export finance

Bhushan Steel secures $ 258-mn export finance
PTI
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First Published: Tue, Aug 02 2011. 07 21 PM IST
Updated: Tue, Aug 02 2011. 07 21 PM IST
Mumbai: Leading secondary steel maker Bhushan Steel on Tuesday said it has secured $ 258 million (around R 1,135 crore) export finance facility from Standard Chartered Bank, DZ Bank of Germany, and DBS Bank.
Under the terms, the export credit agency Euler-Hermes AG provides a guarantee for covering 95% of the political and commercial risks related to the loan, the banks said in a joint statement issued here.
“With this financing, we look forward to pushing ahead with our expansion plans and the ambition to become a leading integrated steel producer,” Bhushan Steel director finance Nittin Johari said in the statement.
Bhushan Steel will utilise the proceeds of this facility to fund the purchase of steel-making equipment and services from German exporters, such as SMS Siemag, Siemens and Outotec with a view to boosting capacity at its Orissa site.
“India is a key market for DBS and we continue to invest in building our franchise. This coordinated financing deal has allowed us to grow our presence in a specialised foreign currency loan market with ECG/ECA backed structured funding,” DBS India senior vice-president Ashwin Juneja said.
Bhushan Steel is an integrated steel manufacturer with existing hot rolled coil capacity of approximately 2 million tonnes.
“This partnership highlights our capabilities in securing long term ECA backed financing for our clients’ important transactions,” Standard Chartered global head of project and export finance James Courtenay said.
The scrips of Bhushan Steel on Tuesday closed at Rs 374.90, down 2.51% from its previous close on the Bombay Stock Exchange, on a day the main index Sensex plunged 204 points on global worries.
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First Published: Tue, Aug 02 2011. 07 21 PM IST