GFG Alliance Ltd. Chairman Sanjeev Gupta injected US$150 million into the group's Australian steel manufacturing business, Infrabuild, as equity financing following the halt of its listing in the country and its failure to raise debt, Reuters reported Sept. 20.
Infrabuild is now raising US$325 million via the sale of secured bonds offering a 12% coupon, down from a previous plan to raise US$475 million debt.
The newswire called this coupon rate "unusually high" and compared it to steel producer BlueScope Steel Ltd., which pays 4.8% for drawn debt.
The funds will be used to refinance debt and provide working capital to InfraBuild, according to Moody's.
Earlier in September, GFG postponed this year's planned A$1 billion IPO of parts of the Australian Liberty Steel unit on the ASX due to market volatility and the company's tight year-end timeline.
