JSW Steel seeks syndicated loan of up to $900 mn from international lenders

By Chien Mi Wong and Saikat Das

 

India’s largest steelmaker JSW Steel Ltd. is seeking a loan of as much as $900 million, according to people familiar with the matter, adding to a flurry of dollar debt deals from the nation’s borrowers. 

Nearly 10 international lenders — including European, Japanese and Middle Eastern banks — are in discussions for the proposed syndicated loan, said the people, who asked not to be identified discussing private matters. Proceeds raised will fund the company’s expansion plans and general corporate purposes, the people said, adding that the loan tenor could be in the range of five to six years. 

 

 

Discussions are still ongoing and the loan’s details could be subject to change, the people said. JSW Steel didn’t immediately respond to Bloomberg’s email seeking comments. 

 

JSW Steel’s loan comes amid a busy period for Indian borrowers, with Reliance Industries and Greenko Energy Holdings’s founders also tapping foreign debt as local funding rates remain elevated amid tight domestic liquidity. In 2024, Indian borrowers raised $23.3 billion via foreign currency loans versus $29.2 billion the year prior, and $14.4 billion in 2022, according to Bloomberg-compiled data.

 

The borrower — India’s largest steel producer with capacity of 35.71 million tons per annum — last raised an offshore loan in June 2024, when it signed a $900 million five-year syndicated facility, according to Bloomberg-compiled data.