Media reports indicate that Tata Steel plans to rise $1 billion through issue of dollar bonds mainly to refinance loans. November 2009 was the last time the company raised dollar-denominated bonds.
Besides this, the company would raise Rs 130 billion for its 6-million metric-tonne steel plant project in the eastern state of Odisha. The plant would be built in phases, the first of which will be completed by August 2014, Chief Finance Officer Koushik Chatterjee said on a conference call last month.
The company is said to be in talks with banks to arrange the sale and banks may be hired by early next month, reports indicate.
The firm needs to redeem a total of $5.5 billion bonds and loans by November 2016, official data reveals. Most of the group’s net debt of $10.5 billion was taken to fund the $12.9 billion acquisition of steelmaker Corus in January 2007.
A slew of companies, including Vedanta Resources Plc, Jindal Steel & Power, Reliance Industries are raising funds from the foreign debt market in order to refinance their loan.
Vedanta Resources, the oil and metals producer controlled by Indian billionaire Anil Agarwal, plans to raise about $3.5 billion through bonds in its biggest refinance plan to help extend maturity of the debt, reports indicate.
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