JSW to raise $850 mn from international markets | business | Hindustan Times
Today in New Delhi, India
Dec 11, 2016-Sunday
-°C
New Delhi
  • Humidity
    -
  • Wind
    -

JSW to raise $850 mn from international markets

business Updated: Aug 05, 2007 21:33 IST
Indulal PM
Indulal PM
Hindustan Times
Highlight Story

India's fourth largest steel maker, JSW Steel, is planning to raise close to $850 million (around Rs 3,400 crore) by issuing securities in the international markets. The funds are aimed at helping the company's Rs 17,000 crore expansion plans.

JSW is planning to raise around $250 million through a debt market issue and has also lined up a $400 million-equivalent rupee loan. The company is also planning to raise another $200 million through equities from the international markets, group officials said.

Though JSW has not yet finalised the precise time-frame for the fund raising, it is expected to be done over the next six to 12 months.
"We have a capital expenditure of Rs 17,000 crore over the next five years. We have already tied up funds for Rs 10,000 crore and the remaining Rs 7,000 crore will be raised as debt," said JSW director (Finance) MV Sheshagiri Rao.

"We intend to raise funds and there are two or three ways of fund raising. We are working on the precise details and a favourable market conditions to raise resources," Rao said.

The funds are part of JSW's expansion plans in Bellary where it would increase the production capacity from the current 3.8 million tonnes to 10 million tonnes within three financial years. The production capacity would be increased to 6.8 million tonnes by Auguts next year.

The company is also planning to invest between Rs 800 and 1000 crore for an iron ore beneficiation plant in Bellary, where it would take low grade iron ore and improve the quality to make it suitable for steel production.

JSW is in talks with mining companies in the state for procurement of low-grade iron ore. It also intends to take equity participation in mining companies to ensure raw material supplies.