Mumbai: India's second largest private steel manufacturer, JSW Steel, plans to launch up to $500 million in dollar-denominated bonds, the company told stock exchanges on Tuesday. This is part of the company's plan to raise up to $1 billion that was approved by its board of directors in July.

On Monday, The Economic Times reported that the company had finalised 11 international banks over the weekend to manage the proposed issue. The proceeds from the proposed sale of bonds will be used to refinance some existing loans. The bonds offer a coupon rate of 5.95% to investors.

Sajjan Jindal-promoted JSW Steel 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.