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JSW Steel, Duferco International ink $700 million pact for five years

For Duferco International Trading Holding the transaction assures a captive supply of various steel products from JSW over the term of the advance payment and supply agreement

Press Trust of India  |  New Delhi 

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Saturday said it has inked a 5-year advance payment and supply agreement with for $700 million.

The pact executed on 27 February entails a financing structure, which will provide "JSW long term funding to complement its plans for future growth secured by committed exports of to DITH," said in a statement.

For (DITH) the transaction assures a captive supply of various from JSW over the term of the advance payment and supply agreement.

"The transaction further cements the long-term relationship between the two groups which have partnered together in various commercial ventures during the past 15 years. The deal is the largest to have been arranged in the Indian steel sector," the statement said.

In the past, JSW and DITH have entered into similar trade financing arrangements on smaller scale but for a longer term, all of which were successfully executed and completed.

The deal has been arranged and financed by the global banks - BNP Paribas, Citibank, Credit Suisse, ING, Mashreqbank, Natixis, Societe Generale, acting as Mandated Lead Arrangers and Bookrunners, the statement said.

"The is an important deal in diversifying the sources of financing for This not only enables JSW to raise funds at competitive rates but also assures incremental volume of sales in export markets leveraging the of the DITH Group Companies," Seshagiri Rao, JMD and said.

JSW Steel is the flagship company of the diversified $13 billion

First Published: Sat, March 02 2019. 20:35 IST