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Tata Steel in talks to raise up to $400 million in offshore green loan

No final decision has yet been taken and details may still change, according to the people. Bloomberg-compiled data indicate this would be Tata Steel's first green loan

Tata Steel

Photo: Bloomberg

Bloomberg

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By Saikat Das
 
India’s Tata Steel Ltd. is in talks to raise as much as $400 million, according to people familiar with the matter, in what could become the company’s first green loan. 
 
The debt could have a tenor of about five years and the proceeds would be used for capital expenditure, said the people, who declined to be named because the matter is private. The lenders include Bank of America Corp., HSBC Holdings Plc, JPMorgan Chase & Co. and Mitsubishi UFJ Financial Group Inc. 

No final decision has yet been taken and details may still change, according to the people. Bloomberg-compiled data indicate this would be Tata Steel’s first green loan. 

The company did not immediately respond to Bloomberg’s requests for comment.

Steelmaking is carbon intensive and the sector will require fresh financing to improve its environmental footprint. A global shift to low-emissions productions would require outlays of about $4.4 trillion over the next 30 years, according to a 2022 McKinsey Quarterly report. 

Tata Steel lags its peers on several environmental metrics, including greenhouse gas emissions, air quality, and water and waste management, according to data compiled by Bloomberg

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First Published: Apr 18 2023 | 3:50 PM IST

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