JSW to raise Rs 3500 crore to fund Bhushan Power & Steel acquisition

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New Delhi, Dec 10: JSW Steel is looking to raise up to Rs 3,500 crore via a domestic bond sale to partly finance its Rs 19,500-crore acquisition of Bhushan Power & Steel, reports said.
The Mumbai-based steelmaker plans to sell about Rs 3,000-3,500 crore of bonds and is reportedly in talks with lenders Credit Suisse, Deutsche Bank and Standard Chartered for the purpose.
Sources said that the bonds will have maturities of three or four years, but that their pricing has not been finalised as yet. The bond sale will likely take place in January, once the National Company Law Appellate Tribunal (NCLAT) gives its final approval for it.
Bhushan Power & Steel was admitted for insolvency proceedings around June last year after defaulting on dues worth Rs 47,000 crore.
In October, more than two-thirds of the company’s lenders (Committee of Creditors) voted in favour of JSW Steel’s bid for it, which came in at around Rs 19,500 crore.
However, the bid was challenged by Tata Steel. A two-member NCLAT bench has scheduled the matter for further hearing on December 20.
This is JSW Steel’s first domestic bond issuance in four years. It had last sold such debt securities in 2014 at a coupon of 9.66 percent.