The Gulf Time Newspaper One of the finest business newspapers in the UAE brought to you by our professional writers and editors.
Bloomberg
Tata Steel Ltd. has sounded out banks about raising the equivalent of $5.1 billion through loan facilities and a bond issue to help refinance debt, according to people familiar with the matter.
The Indian steelmaker plans a
$2.15 billion six-year syndicated facility to refinance loans in the books of units, TS Global Holdings Pte. and NatSteel Asia Pte., said the people, who are not authorised to speak publicly and asked not to be identified. Tata Steel’s spokesman declined to comment on the planned financing.
The new borrowing will mark Tata Steel’s return to the international loan markets for the first time since the middle of 2016 as it sharpens its focus on the Indian market after selling unprofitable assets in the UK. The company said it plans to raise as much as
$2 billion in a rights offer to add capacity in India as well as to repay debt.
A separate 2.5 billion-euro borrowing is planned to refinance debt remaining after the transfer of Tata Steel Europe’s existing obligations into its proposed JV with Germany’s Thyssenkrupp AG.