JSW Steel plans $500 million overseas bond issue: Report

jsw-steel

Sajjan Jindal-promoted JSW Steel might launch a $500- million (roughly Rs 3,500 crore) bond offering to global investors this week, a report by The Economic Times has said.

The proceeds from the dollar-denominated bonds sale would be used to refinance some loans and the remaining would be used for general corporate purposes, a source told the publication.

This would be the third such overseas offering by JSW Steel. The previous successful bonds issue was done in April this year.

Moneycontrol could not independently verify the news.

“We do not want to comment on speculation,” a senior JSW Steel executive told The Economic Times.

The steel-maker has already selected 11 banks as the bookrunners of the transaction, the report said.

The bookrunners might include reputed US and European banks as well as Japanese financiers who have previously loaned money to JSW Steel.

JSW Steel has raised $1 billion (roughly Rs 7,000 crore) in total from the past two overseas bonds issues, the report said.

The bonds issue worth $500 million in April was rated Ba2 by Moody’s. The bonds, with a five-year term, were issued at a coupon rate of 5.95 percent.

Moody’s recently revised its outlook on the Indian steel sector to negative, citing pressure from rising input costs on Asian producers.

news Source: moneycontrol

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