JSW Steel raises $500 million though forex bonds

JSW Steel, one of India's largest steelmakers, raised $500 million by issuing bonds to overseas investors on Wednesday, as a part of its plan to partly refinance rupee debt.

The five year bond carried a coupon rate of 4.75%. The bankers involved in the issue were Deutsche Bank, Citibank, Standard Chartered, ANZ and Credit Suisse. The bond issue was a Regulation S transaction, which is not open to investors in United States.

"The response was phenomenal. Despite it being a Reg S bond, which can be marketed to a restricted investor list, the response was overwhelming. Mostly large, long only quality funds in Asia and Europe participated," said Amrish Baliga, Managing Director, Deutsche Bank India.

He added that the bond markets were globally volatile a few days prior to launch and a pricing of 4.75% was very tight. The bond was listed on the Singapore Stock Exchange.

The Sajjan Jindal-led company is undertaking massive expansion of its steelmaking capacity in India through organic and inorganic growth. It plans to invest $22 billion in the next 10 years. It also in talks to acquire some financially stressed steel companies in Europe.

JSW Steel's net debt was Rs. 35756 crore as on September 30. Debt to equity ratio stood at 1.56, while debt to EBITDA ratio stood at 3.46.