Mumbai: Essar Steel India Ltd has raised $1 billion through long-term export securitization to prepay existing rupee debt, the company said on Monday.

The company had earlier raised $1 billion through external commercial borrowing (ECB) route.

“With this financing, the company has dollarized $2 billion of its debt which has led to significant benefits," company said in a statement. “These include reduction in the average interest cost from rupee linked rate to dollar linked rate which has resulted in a large interest saving of approximately 720 crore annually, and elongation of the average maturity of its debt from 3.5-6.75 years."

Essar Steel is the fourth largest Indian steel maker with a capacity of 10 million tonnes at its integrated steel making facility in Hazira in Gujarat.