NEW DELHI: Tata Steel stock looked good on Tuesday, jumping 2 per cent, on the buzz that the steelmaker is looking to raise $3.1 billion in overseas loans.
Sources told ET that the Tata group company is trying to mobilise $3.1 billion in overseas loans in a bid to dispose of existing high-cost debt, ahead of its European operations' merger with German steel giant Thyssenkrupp.Evidently, the stock got a push and was up 1.73 per cent to hit a high of Rs 528.30 on the BSE.
Once completed, the borrowings would be one of the largest refinancing programmes by a corporate this year, ET reported.
The new facilities will replace the existing debt held by its European businesses and the pricing would be done some time in August, multiple sources with knowledge of the matter told ET.
The group has started negotiations with half a dozen banks, including Barclays, JPMorgan, MUFG, DBS Bank and Citigroup, the sources added.
Individual banks could not be contacted immediately for comments.