Tata Steel S’pore arm executes pacts to refinance $1.5-bn debt

By: | Published: December 3, 2015 2:26 AM

Tata Steel on Wednesday said the company has executed agreements for debt refinancing of $1.5 billion through its Singapore-based subsidiary TS Global Holdings (TSGH).

Tata Steel on Wednesday said the company has executed agreements for debt refinancing of $1.5 billion through its Singapore-based subsidiary TS Global Holdings (TSGH).

The $1.5 billion loan facilities comprises a 5 year loan of $750 million and a six year loan of $750 million.The proceeds of the loan will be used for repaying existing term loan facilities in TSGH.

As of  September, Tata Steel’s consolidated debt was at R71,798.36 crore.

The loan facilities have been contracted with a group of 16 mandated lead arrangers: Australia and New Zealand Banking Group, Axis Bank, Bank of America NA, Bank of Tokyo-Mitshubishi 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, the company said in a statement.

Koushik Chatterjee, Tata Steel’s group executive director (Finance & Corporate), said, “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 remained unaffected.

The company’s operations were significantly impacted in the domestic market as well as in Europe due to falling demand for the metal resulting in lower prices.

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