ArcelorMittal Nippon Steel in talks for $1-billion loan
ArcelorMittal Nippon Steel India Ltd, a joint venture between ArcelorMittal South Africa Ltd and Japan’s Nippon Steel Corp, is in talks with banks to raise about ₹8,500 crore ($1 billion), according to people familiar with the matter, in what could be the biggest localcurrency loan this year to fund the firm’s expansion.
At least three lenders including State Bank of India, ICICI Bank and Axis Bank would be participating in the syndicated deal, with proceeds to be used for capital expenditure, said the people who asked not to be identified.
SBI could lend more than half of the loan, which may carry a tenor longer than five years and be priced against a local interest rate benchmark, they said, adding that
Leading banks are involved in the syndicated deal, reflecting confidence in the venture's growth prospects
details of the lending facility are not finalised and may change.
MARKET INSIGHTS
If the deal materialises, it would be the country’s largest rupee-denominated loan in 2024 so far, Bloomberg-compiled data show. India’s fourth-biggest manufacturer of flat steel is
seeking to ramp up capacity. ArcelorMittal Nippon Steel India, State Bank of India, ICICI Bank and Axis Bank did not immediately reply to e-mailed requests seeking comment.
The steel firm had earlier held loan negotiations with a few other lenders, but they couldn’t agree on the cost of funding, said the people.