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JSW Steel raises $500 million through offshore bonds

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MUMBAI: JSW Steel, amongst India’s high two makers of the alloy, raised $500 million by way of an offshore bond, which may come in useful if the pandemic have been to hasten consolidation within the trade.

The excessive yield bonds obtained an order ebook of about $1.5 billion. They provided 5.9 p.c, which is about 35 foundation factors decrease than its preliminary steerage, stated folks concerned within the fundraising train.

JSW couldn’t be contacted instantly for feedback.

On September 21, ET reported that on its fundraising plan by way of a mix of bonds and loans.

“The blow out response globally across investors and geographies showed that real money investors shrugged off intense volatility,” stated Amrish Baliga managing director Deutsche Bank. They demonstrated sturdy urge for food within the fifth repeat bond by this group, he stated.

Deutsche Bank, Standard Chartered, Credit Suisse, Citi, BNP and Mashreq are among the many banks that helped the corporate elevate abroad cash.

The greenback bonds proceeds can be used for each repaying excessive price debt and different enterprise functions. US-based subsidiary Periama Holdings issued these papers. Periama acts as a holding firm for JSW Steel’s plate and pipe operations primarily based in Baytown and coking coal operations in West Virginia.

Global ranking firm Fitch Ratings assigned a ‘BB-‘, a high-yield class grade to the bonds.

Periama had borrowings of round USD960 million at end-June 2020, of which over USD800 million have been loans from JSWS, based on Fitch Ratings.

“The repayment of intercompany loans from proceeds of the proposed bond should boost liquidity at JSWS,” the ranking firm stated in word.

Last Friday, it raised Rs 4,000 crore through native bonds that provided 8.50 p.c with seven-year maturity, ET reported on September 8.

JSW Steel plans to bid for the bancrupt Gontermann Peipers (India), owned by Pramod and Vinod Mittal, youthful brothers of Lakshmi Mittal, promoter of ArcelorMittal.

The steelmaker held a money stability of about Rs 12,000 crore on the finish of FY20.

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