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Insolvency: Tata Steel to seek loan for Bhushan Steel buy

The producer is in talks with banks about a six-month bridge facility

LP George Smith Alexander Anurag Joshi & Swansy Afonso | Bloomberg 

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Tata Steel is preparing a Rs 115 billion ($1.7 billion) loan to help fund itspurchase of assets from Bhushan Steel, people familiar with the matter said.

The producer is in talks with banks about a six-month bridge facility, which it aims to refinance with a loan that would mature in about 15 years, according to the people, who asked not to be identified because the matter is private.

The acquisition would help Mumbai-based Tata in its goal to double production in five years, as it also plans further expansion at its Kalinganagar plant.

The new facility would be the largest Indian local-currency loan since HPCL-Mittal Energy’s 134.4 billion rupee loan, signed in May 2017, according to data compiled by Bloomberg.

Lenders in talks with Tata for the loan include Axis Bank, HDFC Bank Ltd., IndusInd Bank, Kotak Mahindra Bank Ltd., Standard Chartered Plc, State Bank of India and YES Bank, the people said. A Tata Steel spokesman didn’t immediately reply to an email seeking comment on the planned borrowing.

First Published: Fri, May 18 2018. 03:28 IST