INSUBCONTINENT EXCLUSIVE:
Mumbai: JSW Steel is seeking to garner up to Rs 3,500 crore in a local bond sale as part of a broader, dedicated fundraising to finance the
buyout of Bhushan Power and Steel (BPSL), the future ownership of which would be decided by a court of appeals.
To part-finance the Rs
19,500 crore-acquisition, JSW Steel plans to sell about Rs 3,000-3,500 crore of bonds locally, and the Mumbai-based steelmaker is in talks
with foreign lenders such as Credit Suisse, Deutsche Bank and Standard Chartered, three people familiar with the matter told ET.
These
domestic bonds may be of three- or four-year maturities, although the pricing is not yet decided, said one of the persons cited above
He did not comment on this specific bond sale.
Standard Chartered Bank and Deutsche Bank declined to comment on the matter, while a mail
first domestic issuance after a gap of four years
It had last sold such debt papers in 2014 at 9.66 per cent
Those four-year bonds are yielding about 9.40 per cent now and set to mature on December 23, show data from Bloomberg.
In August, rating
prices.
About 18 months ago, Bhushan Power and Steel was admitted for insolvency proceedings as the company had defaulted on Rs 47,000 crore
payment of about Rs 19,500 crore to banks in lieu of the loans they have to recover from the distressed Bhushan Power.
Earlier, Tata Steel
Later, Tata Steel challenged the decision taken by the committee of creditors.
A two-member NCLAT bench, headed by Justice SJ Mukhopadhaya,
has scheduled the matter for further hearing on December 20.
