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JSW Steel raises USD 500 million from overseas investors

Press Trust of India  |  New Delhi 

JSW Steel on Wednesday raised USD 500 million (around Rs 3,500 crore) through an international bonds issue, according to a regulatory filing.

The five-year dollar money sale saw high demand from investors across and Asia, and had attracted bids worth USD 1.75 billion, said.

The company, which is rated one notch below the investment grade, managed a coupon of 5.95 per cent, they said.

The company in a filing to BSE Wednesday said that its board committee has approved the issuance bonds to raise USD 500 million.

"The of the board of directors of (the company) has approved the issuance of fixed rate senior unsecured notes (the 'Notes') aggregating to USD 500 million," JSW Steel said.

The has also approved the pricing, tenure and other terms of the notes.

"The proceeds of the notes will be used by the company to repay external commercial borrowing loans, for capital expenditure or any other purpose...," it said.

The issue had received Ba2 rating with a positive outlook by global ratings agency

The fund raising was in line with a May 2017 board resolution to raise up to USD 1 billion in one or more tranches of international bond sales, the company informed the exchanges.

The company, which has an installed capacity of 18 million tonne, is intending to use the proceeds to retire debt and also for capital expenditure, according to

"Even after strong re-opening of international bond markets for Indian high yield issuers, the response to JSW Steel has been overwhelming," Amrish Baliga, the managing director and at Deutsche Bank, the lead- arranger, said.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, April 10 2019. 22:40 IST