JSW Steel plans to raise up to $700 million via bonds

Sajjan Jindal’s JSW Steel is planning to raise up to $700 mn via overseas bonds, sources with direct knowledge said. Fund raising is planned to replace part of the high cost debt on the books of JSW Ispat which recently merged with JSW Steel.

JSW Steel has put the fund rasing plan on fast track post the merger. Company is in talks with the banks for the bond issuance. The total debt burden of the company is over Rs 25,000 crores. JSW Ispat’s debt of over Rs 7,000 crores is at a cost of over 10% interest. JSW Steel is planning to replace this high cost debt with bonds.

The quantum of bond issuance with the tenure and rate will be fixed post the investor response. Sources say the company is expecting a better value as the merger between the companies is complete.

In an e-mail statement JSW Steel’s spokesperson said, “We don't comment on speculation.”