SINGAPORE, Nov 21 (Basis Point) - A jumbo Rs259bn (US$4.7bn)
project finance loan for Tata Steel Ltd is likely to be launched
into syndication in two weeks. The company's board approved the
launch at a meeting on November 9. The deal is likely to be
launched in one go instead of in phases, which was one of the
Proceeds will be used to fund a 6m tonnes per annum
greenfield steel plant. Tata Steel has already invested Rs50bn
in the project, which involves a total cost of Rs370bn. The
steel plant is being built at Kalinganagar in the eastern Indian
state of Odisha.
State Bank of India has already committed Rs90bn to the
loan. The deal was sounded to the market in September in the
10.75% to 11.50% range.
The 12-year financing has been mandated solely to SBI
Capital Markets. The new borrowing will be the largest project
financing in the current financial year. It will also help push
up loan volume for the industry, which currently stands at
nearly half last year's figure.
(Reporting by Manju Dalal; Editing by Gavin Stafford)