Tata Steel arm ties loan facility

Tata Steel, the country's largest steel producing company on Wednesday said its Singapore-based arm T S Global Holdings has executed agreements for loan facilities worth $1.5 billion to refinance the debt which will be used to pay the existing term loan facilities of  T S Global Holdings. The new loan facilities will comprise of a five-year loan of $750 million and another six-year debt of $750 million, said Tata Steel in its release. “The new loan facilities provide greater flexibility in their terms and conditions and savings in cost, besides extension of tenure,” the release said.

Koushik Chatterjee, group executive director (finance and corporate) at Tata Steel.

“This will provide greater financial headroom for the business, as it faces tough market conditions, even as overall leverage and debt remains unaffected,” he added.

The loan facilities have been contracted with a group of 16 lead arrangers such as Australia and New Zealand Banking Group, Axis Bank, Bank of America N.A, HDFC Bank and ICICI Bank among others.

Shares of Tata Steel were trading at Rs 244 on the BSE, up 2.67 percent from previous close.