Global steel major Tata Steel today said its Singapore arm has executed pacts worth USD 1.5 billion for refinancing its debt.
“T S Global Holdings Pte Ltd (TSGH), a subsidiary of Tata Steel Ltd incorporated in Singapore, has executed agreements today for loan facilities of USD 1.5 billion comprising a five -year loan of USD 750 million and a six year loan of USD 750 million”, the company said in a statement.
The proceeds will be used to repay existing term loan facilities in TSGH, it said.
The loan facility has been contracted with a group of 16 mandated lead arrangers including Australia and New Zealand Banking Group Ltd, Axis Bank Ltd, Bank of America NA, Bank of Tokyo-Mitsubishi UFJ Ltd, BNP Paribas, Citigroup Global Markets Asia Ltd and ICICI Bank, among others.
Tata Steel Group Executive Director, Finance and Corporate, Kaushik Chatterjee said: “Tata Steel actively reviews all its financing options and seeks to continuously optimise its debt based on market conditions.”
“The new loan facilities provide significantly 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.
Tata Group is among the top 10 global steel companies with an annual crude steel capacity of about 30 million tonnes per annum.
The Group with a turnover of USD 22.32 billion in 2014-15 fiscal has over 80,000 employees and is a Fortune 500 company.