Uttam Galva taps Deutsche Bank for loan

Uttam Galva Steels (UGSL), the country's second largest galvanised steel manufacturer, today announced a three- year unsecured loan worth Rs 180 crore with Germany's Deutsche Bank.

"The loan will purely be for short-term funding and not for any long-term projects and save interest on hard-earned money," Ankit Miglani, director, said.

The loan, structured at the London inter bank offered rate (Libor), plus 3 per cent, is claimed to be one of the lowest in the country. In domestic terms, it works out to about 7.5 per cent, which is lower than the standard 8 to 12 per cent that the steel industry pays.

"Earlier this year, BNP Paribas and Societe Generale Corporate & Investment Banking had taken exposure to the tune of Rs 67.5 crore. We are thus trying to increase our exposure to international banks and reduce cost of funds," added Miglani.