Tata Steel refinances $1.5 billion debt to reduce interest cost, extend tenure

MUMBAI: Tata Steel's Singapore arm T S Global Holdings Pte raised $1.5 billion debt to settle outstanding loans, the company said in a statement. The loan facilities comprise of a five-year loan of $750 million and a six-year loan of the same amount.

The loan facility has been contracted with a group of 16 mandated lead arrangers including Australia and New Zealand Banking Group Ltd, Axis Bank Ltd, Bank of America NA, Bank of Tokyo-Mitsubishi UFJ Ltd, BNP Paribas, Citigroup Global Markets Asia Ltd and ICICI Bank, among others.

"The new loan facilities provide significantly greater flexibility in their terms and conditions and provide savings in cost, besides extension of tenure. This will provide greater financial headroom for the business, as it faces tough market conditions, even as overall leverage and debt remain unaffected," said Koushik Chatterjee, Group Executive Director - Finance and Corporate.