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 possibilities.
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)