Debt

Debt financing

JSW Steel's US arm raises $182-M to fund Baytown plate mill modernisation

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JSW Steel's US arm has raised USD 182 million from two Italian banking institutions, Intesa Sanpaolo and Banco BPM, to fund the modernizing of its plate mill facility in Baytown, US. The total cost of the modernisation project is USD 260 million. Of the USD 182 million financing, USD 70 million is covered under SACE guarantee and the balance USD 112 million is a term loan. The SACE guarantee is provided by the Italian Export Credit Agency with the intention of promoting Italian exports. The remaining funding will be through internal accruals. In 2007, the JSW group bought the then bankrupt Baytown steel asset for USD 810 million. The modernisation will support the requirement of on & offshore wind tower, agriculture, construction, storage tank and surface critical market segments, and is expected to be completed by 2023.