Jindal Saw subsidiary raises Rs 775 crore loan

NEW DELHI: Pipe maker Jindal Saw today said its subsidiary, Jindal SAW Middle East FZC, has raised Rs 775 crore loan from various financial institutions in the region for growth and long-term capital requirements.

"JSME, a subsidiary of Jindal SAW, has closed a club facility of AED 465 million for its long-term and growth capital requirements," the company said in a statement.

JSME, which has a capacity of 3.5 lakh tonnes per annum now, has the largest facility in Abu Dhabi to produce ductile iron pipes of various sizes used in water transportation and sewage systems in the Middle East and North Africa region.

Commercial Bank of Dubai, Commercial Bank International, Emirates NBD and Mashreqbank were involved in structuring, organising and executing the transaction, while Alpen Capital (ME) Ltd was the financial advisor.

Neeraj Kumar, Group CEO and Whole time Director, Jindal SAW said the company raised the "club facility" largely to substitute "existing facilities with the new facilities which is not only patient in tenor but also sufficient to take care of near to medium term funding requirements of the business in a more efficient and cost effective manner."

He said Jindal Saw is committed to developing long-term business relations in MENA region.

"We will be working closely with local and regional banks for execution of regional strategy and are extremely thankful to them for their support," Kumar added.