Tata Steel Ltd. is looking to secure funding equivalent to US$5.1 billion via a loan facility and a euro-denominated bond issue in a bid to refinance its debt, Bloomberg News reported Dec. 26, citing "people familiar with the matter."
The company is planning a US$2.15 billion, six-year syndicated facility to refinance loans of its units, TS Global Holdings Pte. and NatSteel Asia Pte.
The Indian steelmaker will also borrow €2.5 billion after Tata Steel Europe Ltd.'s existing debts are transferred to the joint venture with ThyssenKrupp AG.
Recently, Tata's board approved a rights issue to raise up to 128 billion Indian rupees to fund the expansion of its Kalinganagar steel facility in India's Odisha state as well as to slash debt.
As of Dec. 25, US$1 was equivalent to 64.05 Indian rupees.