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Tata Steel BSL raises INR 12,000 crore - Report

Steel News - Published on Fri, 07 Dec 2018

Image Source: Just Dial
ET reported that Tata Steel BSL has raised INR 12:000 crore to refinance a bridge loan: or stop-gap credit facility, availed to fund Tata Steel’s acquisition of the company in the insolvency resolution process. The ET report cited three people familiar with the matter as saying that “Axis Bank, HDFC Bank and Kotak Mahindra Bank are among the five lenders that loaned the refinancing funds. Axis Bank lent about INR 7,000 crore, which the bank could sell down to other lenders. HDFC Bank extended about INR 3,000 crore of credit, while Kotak Mahindra loaned INR 1,000 crore. Two Kerala-based banks were also parts of the consortium, advancing INR 500 crore each.”

Koushik Chatterjee, Executive Director and Chief Financial Officerof Tata Steel, told ET, confirming the move, that "The overall acquisition of Bhushan Steel of more than INR 35,000 crore was funded through a mix of internal cash generation, shareholder funding and the balance bridge debt of INR 16,500 crore raised in the acquisition vehicle. This bridge debt is being termed out now. In November, aINR 12,000-crore facility was contracted in Tata Steel BSL from a syndicate of five banks. More than INR 10,000 crore has been drawn from this facility already to retire the bulk of the bridge financing and termed out. There will be no increase in gross debt levels of Tata Steel due to the above financing.’

The loan is likely to have come at a 9.30% rate, with a 12-year maturity period, market sources said.

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Posted By : Sanju Moirangthem on Fri, 07 Dec 2018
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