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SAIL to Raise INR 5,000 Crore via NCDs & Bonds

Steel News - Published on Fri, 16 Aug 2019

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Financial Express reported that sitting on a high debt of INR 48,500 crore at the end of the first quarter of the current fiscal, Steel Authority of India proposes to raise further debt by up to INR 5,000 crore in the next one year through private placement of secured non-convertible debentures/bonds. The company intends to use the debt to part-fund its ongoing capacity program and convert some short-term debts into longer tenure. SAIL said in a letter to the shareholders ahead of the annual general meeting “On analysis of the various options of raising funds through borrowing in domestic and international markets, it has been decided by the board of directors to raise funds through private placement of secured non-convertible debentures/ bonds to the extent of INR 5,000 crore during the year,”

According to Edelweiss, SAIL has INR 3,200 crore debt repayment obligation in the current fiscal. SAIL also proposes to spend INR 4,000 crore on capacity expansion this fiscal.

SAIL reduced its debt to INR 45,170 crore as on March 2019 from INR 45,409 crore a year earlier. However, debt further rose to INR 48,460 crore at the end of the first quarter of the current fiscal. As on March 2019, the debt-equity ratio of the company stood at 1.2:1. The company paid INR 3,155 crore on interest and finance charges alone in 2018-19.

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Posted By : Ratan Singh on Fri, 16 Aug 2019
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