JSW Steel raises $400 million in overseas debt1 min read . Updated: 24 Sep 2019, 09:55 PM IST
- The proceeds will be used to refinance existing loans and for general corporate purposes
- The NCDs will be listed on the Singapore Stock Exchange
Mumbai: Sajjan Jindal-promoted JSW Steel raised $400 million in overseas debt today. The 5.5-year non-convertible dollar-denominated debentures were priced at a yield of 5.375%, a person aware of the development told Mint.
Mint reported on Tuesday morning that India's second largest private steel manufacturer had plans to launch up to $500 million in dollar-denominated bonds. This is part of the company's plan to raise up to $1 billion that was approved by its board of directors in July.
The issue was rated Ba2 by Moody's and BB by Fitch. The NCDs will be listed on the Singapore Stock Exchange.
Standard Chartered Bank, ANZ, Barclays, BNP Paribas, Citigroup, Credit Suisse, Deutsche Bank, First Abu Dhabi Bank, ING, JP Morgan and Mizuho Securities were the lead managers and joint bookmakers for the issue.
The proceeds will be used to refinance existing loans and for general corporate purposes.
JSW Steel has raised $1 billion in two tranches over the last two years. The company is in the midst of a capital expenditure plan of ₹44,415 crore to increase its total capacity to 24.7 mtpa by FY21, by way of brownfield expansion and acquisitions. It is also slated to acquire the stressed facilities of Bhushan Power and Steel for ₹19,700 crore under the Insolvency and Bankruptcy Code.