ArcelorMittal secures $1.2 bn funding untill 2012

ArcelorMittal, the world's largest steel producer, today said it has secured a $1.2 billion funding commitment to refinance its existing debt.

The credit lines from these new facilities effectively extend existing financing untill 2012, the NRI billionaire L N Mittal-led company said in a statement.

"One of the priorities of our financial strategy is to extend debt maturity, which we believe is prudent given the current operating environment and provides added flexibility," ArcelorMittal CFO Aditya Mittal said.

"This refinancing of 2010 and 2011 maturities represents another important step forward in realising this strategy and also reflects the strong relationships we have with our banks," he added.

In February, the company had said it has "secured in principle through Forward Start Facilities" refinancing of $4.8 billion of certain existing indebtedness and credit facilities maturing in 2010 and 2011. With this the company has now brought the total amount of such refinancing to $6 billion.

Under Forward Start Facility lenders under an existing credit facility commit, well in advance, to provide financing to repay the existing debt at its maturity.