JSW Steel jumped 4.72% to Rs 674.80 after the company's subsidiary JSW Steel USA announced tying-up of long-term financing with two Italian banking institutions, Intesa Sanpaolo and Banco BPM, for plate mill modernisation project in Baytown, Texas.
Intesa Sanpaolo is Italy's leading banking group - serving families, businesses and the real economy - with a significant international presence. Intesa Sanpaolo's distinctive business model makes it a European leader in wealth management, protection & advisory, highly focused on digital and fintech.
The Banco BPM Group was founded on 1 January 2017 from the merger of Banco Popolare and Banca Popolare di Milano. The deep-rooted tradition of the original cooperative banks inspired Banco BPM to pursue a mission oriented to the creation of stable value over time for shareholders through sustainable profitability and development. Banco BPM serves 4 million customers through an extensive and complementary network and a widespread distribution model.
Out of the total financing that is required for JSW Steel USA's Baytown facility modernizing project, $70 million is covered under SACE guarantee and the balance $112 million is a term loan.
SACE is the Italian Export Credit Agency specialized in supporting businesses and the national economic fabric through a wide range of tools and solutions to support competitiveness in Italy and worldwide. With a portfolio of insured operations and guaranteed investments of 165 billion, SACE serves over 25 thousand companies, especially SMEs, supporting their growth in Italy and in around 200 foreign markets.
The financing was structured by SACE's Export Finance Division with the contribution of the SACE office in Mumbai, which has a long-standing relationship with JSW Steel. The SACE guarantee is provided with the intention of promoting Italian exports.
JSW Steel USA's Plate mill modernisation project includes supplies from Italian engineering companies, Danieli & C. Officine Meccaniche S.p.A, Danieli Automation S.p.A, and Danieli Taranis LLC, all being subcontractors of Danieli Corporation Inc. for a cutting line, rolling mill and ACC/DQ.
The project also includes supplies from Sideridraulic for a water treatment and cooling system and from Tenova for a grinding machine for the new rolling mill and related engineering services.
The total value of equipment and related engineering services being provided by these suppliers is over $100 million.
JSW Steel ls the flagship business of the diversified, JSW Group, is India's leading integrated steel company with a steel-making capacity of 28.5 MTPA in India and the USA (including capaclties under joint control).
The steel major reported a consolidated net loss of Rs 848 crore in Q2 FY23 as against a net profit of Rs 7,170 crore recorded in Q2 FY22. Revenue from operations jumped 28.9% to Rs 41,122 crore in Q2 FY23 from Rs 31,909 crore posted in the corresponding quarter previous year.
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