Tata Steel (Tisco) has secured a $50-million foreign currency loan at above 70-90 basis points over Libor (London inter-bank offer rate). The loan will be used to finance the import of capital equipment for the companys ongoing modernisation programme at its Jamshedpur plant.
The loan has, which has a life of ten years with an average maturity period of seven years, is one of the finest deals till date among private corporate, said Ishaat Hussain, vice-president (finance), Tisco. Libor is currently hovering around 6 per cent.
The deal, which closed over the weekend, was arranged by a syndicate of banks comprising Bank of America, ANZ Grindlays and the State Bank of India.
Last week, another Tata group company, ACC, had secured a $ 55-million foreign currency loan at around 95 basis points above Libor.