EIL achieves financial closure of debt for 2.2 mtpa integrated plant

Electrosteel Integrated Ltd (EIL) has achieved financial closure of debt for Rs 5447 crore required for its 2.2 million tonnes per annum (MTPA) capacity integrated steel project.

The loan agreement between EIL and 30 lenders was entered into on August 20, 2009. State Bank of India is the lead bank and facility agent of the lender’s consortium.

There are 29 other lenders in the consortium including HUDCO and LIC. IL&FS Finance Services Ltd is the advisor and sole arranger for syndication of the debt for the company.

EIL is setting up its integrated steel project at Siyaljori (Bokaro district) in the state of Jharkhand.

Initially the plant was proposed to have a 1.3 million tonnes capacity, which is now enhanced to 2.2 MTPA.

The project already has iron ore and coking coal tied up from its captive mine.

Land is also been acquired for the project.

The estimated cost of the enhanced capacity is approximately Rs 7262 crores. Electrosteel is investing Rs 700 crores in the said project by way of equity capital and will own about 39 per cent of equity shares in EIL.