SAIL to raise USD 350 mnfrom overseas market

Country's largest steel maker SAIL today said it will raise USD 350 millionfrom overseas market.
The company has entered into a pact with State Bank of India (SBI) for arranging the amount via external commercial borrowings (ECB).
In a statement, SAIL said it would raise USD 350 million and the borrowing would have a tenure of seven years.
The money raised will be used by the steel maker to meet expenditure on capital schemes, including modernisation and expansion.
"The ECB has been arranged by SBI from its Hong Kong Branch and would be utilised by SAIL towards meeting expenditure on capital schemes including modernisation and expansion (MEP)," the statement said.

The PSU said it has reached the last leg of its modernisation plans.
"SAIL has tied the ECB at the lowest possible spread and the overall cost (on a fully hedged basis) would work out cheaper than that applicable coupon on term loans and bonds for similar period. This re-emphasises the lenders confidence in the credit worthiness of the company," it said. The ECB pact was signed today.