JSW Steel to raise $500 m through overseas bonds

Written by fe Bureau | Mumbai | Updated: Nov 1 2014, 06:29am hrs
JSW Steel, the Sajjan Jindal-led steelmaking firm, is contemplating raising debt by issuing dollar-denominated bonds, the company said on Friday. In a notification to the bourses, the company said that these bonds, if issued, would be listed on Singapore Stock Exchange. A preliminary offering circular has been prepared and shall be made available to the prospective investors in relation to the contemplated issue of notes, the company said in its filing.

Though JSW Steel did not disclose the amount of debt it intends to raise through the bond issuance, sources said that the company maybe looking to raise around $500 million.

In May, JSW Steel had indicated that it wanted to raise around R5,600 crore during the current fiscal to partly refinance the rupee debt on its books with cheaper foreign borrowings, and fund capacity expansion with the remaining.

JSW Steels joint joint managing director and group chief financial officer Seshagiri Rao had said in May that the steelmaker would look to refinance 10% of its overall net debt at the time, or around R3,400, with dollar-denominated borrowings. As on June 30, JSW Steel had a net debt of R35,870 crore.