Tata Steel raises $500mn

Tata Steel today signed an external commercial borrowing agreement to raise $500 million for funding its growth projects and acquisitions.

According to a release issued by Tata Steel to the BSE today, the syndicated term loan facility was for $400 million (or its equivalent in Japanese Yen) with a greenshoe option of a further $100 million.

"17 banks across various geographies participated in the syndicated term-loan facility. The issue was oversubscribed, and the company exercised the greenshoe option. The loan has a door-to-door maturity of seven years, and the coupon of the loan will be Libor plus 45 basis points," the release added.