Tata Steel raises $1.5 bn to repay existing loans

Tata Steel’s wholly-owned subsidiary TS Global Holdings, incorporated in Singapore, has raised $1.5 billion to repay the existing loans.

The loan facilities include $750 million in two parts for a tenure of five and six years. The proceeds of this loan will be used to repay the existing term loan facilities in Tata Steel Global Holdings, said the company in a statement on Wednesday.

The loan facilities have been contracted with a group of 16 mandated lead arrangers, namely Australia and New Zealand Banking Group, Axis Bank, Bank of America, 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 FJSC, HDFC Bank, ICICI Bank, National Bank of Abu Dhabi PJSC, Societe Generale, Standard Chartered Bank and Sumitomo Mitsui Banking Corporation.

Koushik Chatterjee, Group Executive Director (Finance and Corporate), Tata Steel, said the new loan facilities provide greater flexibility in their terms and conditions and provide savings in cost, besides extension of tenor.

This will provide greater financial headroom for the business, as it faces tough market conditions, even as overall leverage and debt remain unaffected, he said.