This potential deal could mark the largest rupee-denominated loan in India for the year 2024.
The State Bank of India, ICICI Bank Ltd., and Axis Bank Ltd. are among the lenders expected to participate in this syndicated loan, which aims to fuel the company's capital expenditure. SBI might contribute more than half of the total loan amount, which is likely to have a tenure exceeding five years and be linked to a local interest rate benchmark.
While specific details of the loan agreement are still being worked out and subject to change, the loan would facilitate ArcelorMittal Nippon Steel India's efforts to boost its production capacity, particularly in anticipation of increased infrastructure spending in India following Prime Minister Narendra Modi's anticipated reelection.
Despite attempts to secure funding from other lenders previously, the firm couldn't reach an agreement on terms. ArcelorMittal Nippon Steel India, along with the banks involved, has not provided immediate comments on these developments.
The joint venture, comprising ArcelorMittal South Africa Ltd. and Nippon Steel Corp., ranks as India's fourth-largest flat steel producer, with a capacity of 8.8 million metric tons per year as of March 2023.
Comments
No comment yet.