JSW Steel USA, a subsidiary of JSW Steel, has tied up $182 million (around `1,500 crore) of long-term financing from Italian banking firms Intesa Sanpaolo and Banco BPM. The funding will be used for modernisation of its plate mill project in Baytown, Texas.
Of the total amount, $70 million is covered under SACE (Italian export credit agency) guarantee and the balance $112 million is a term loan.
A SACE guarantee is provided to promote Italian exports. Intesa Sanpaolo (IMI Corporate & Investment Banking Division) acted as the SACE agent and coordinator of the commercial tranche.
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Both Intesa Sanpaolo and Banco BPM were the bookrunners and mandated lead arrangers of the two facilities.
JSW Steel USA’s plate mill facility in Texas is undergoing a major upgrade, which requires a total investment of $260 million and is expected to be completed by 2023. The remaining funds for the modernisation, following the raising of $182 million, will be funded from internal accruals.
The modernisation project involves addition of a 4-Hi finishing mill, pre-leveler, accelerated cooling system and direct quench, cooling beds and a new roll shop.
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The continuation of these upgrades at Baytown facility will further strengthen JSW Steel USA’s position as a high-quality, low-cost provider of melted and manufactured products. Once this project is completed, it will put JSW Steel USA in a position to deliver higher quality products and enter new markets, the company said in a statement.
The total value of equipment and related engineering services being provided by suppliers – including Danieli Corporation, Sideridraulic and Tenova — is over $100 million.