MUMBAI: JSW Steel, India's biggest maker of the alloy, is set to raise $500 million by selling dollar bonds, ending a year-long wait for garnering debt funds overseas.
The company would use the proceeds to expand production capacity at its Vijayanagar plant in Karnataka, said two people with direct knowledge of the financing plans.
The bonds may be of five-year maturity, and investors outside the US can invest in those debt securities. The company is likely to make a formal announcement soon.
“The company is expected to begin roadshows in Singapore, Hong Kong and other parts of the world early next week,” one of the persons cited above told ET.
JSW Steel declined to comment on the matter.
First Abhu Dhabi Bank, BNP, Citi, JP Morgan, and Standard Chartered are among the lenders helping the company raise the funds.
Such bonds, marked as “high-yield”, should be priced between 5% and 5.5%, dealers said. International rating companies Fitch and Moodys have rated the company BB and Ba2, respectively, one notch below the investment grade, with stable and positive outlook.
JSW Steel has a total debt of about Rs 46,000 crore as on December 31, 2018.
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