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MUMBAI: JSW Steel, among India’s top two makers of the alloy, raised $500 million through an offshore bond, which could come in handy if the pandemic were to hasten consolidation in the industry.
The high yield bonds obtained an order book of about $1.5 billion. They offered 5.9 percent, which is about 35 basis points lower than its initial guidance, said people involved in the fundraising exercise.
JSW could not be contacted immediately for comments.
On September 21, ET reported that on its fundraising plan through a combination of bonds and loans.
“The blow out response globally across investors and geographies showed that real money investors shrugged off intense volatility,” said Amrish Baliga managing director Deutsche Bank. They demonstrated strong appetite in the fifth repeat bond by this group, he said.
Deutsche Bank, Standard Chartered, Credit Suisse, Citi, BNP and Mashreq are among the banks that helped the company raise overseas money.
The dollar bonds proceeds would be used for both repaying high cost debt and other business purposes. US-based subsidiary Periama Holdings issued those papers. Periama acts as a holding company for JSW Steel's plate and pipe operations based in Baytown and coking coal operations in West Virginia.
Global rating company Fitch Ratings assigned a 'BB-', a high-yield category grade to the bonds.
Periama had borrowings of around USD960 million at end-June 2020, of which over USD800 million were loans from JSWS, according to Fitch Ratings.
“The repayment of intercompany loans from proceeds of the proposed bond should boost liquidity at JSWS,” the rating company said in note.
Last Friday, it raised Rs 4,000 crore via local bonds that offered 8.50 percent with seven-year maturity, ET reported on September 8.
JSW Steel plans to bid for the insolvent Gontermann Peipers (India), owned by Pramod and Vinod Mittal, younger brothers of Lakshmi Mittal, promoter of ArcelorMittal.
The steelmaker held a cash balance of about Rs 12,000 crore at the end of FY20.
The high yield bonds obtained an order book of about $1.5 billion. They offered 5.9 percent, which is about 35 basis points lower than its initial guidance, said people involved in the fundraising exercise.
JSW could not be contacted immediately for comments.
On September 21, ET reported that on its fundraising plan through a combination of bonds and loans.
“The blow out response globally across investors and geographies showed that real money investors shrugged off intense volatility,” said Amrish Baliga managing director Deutsche Bank. They demonstrated strong appetite in the fifth repeat bond by this group, he said.
Deutsche Bank, Standard Chartered, Credit Suisse, Citi, BNP and Mashreq are among the banks that helped the company raise overseas money.
The dollar bonds proceeds would be used for both repaying high cost debt and other business purposes. US-based subsidiary Periama Holdings issued those papers. Periama acts as a holding company for JSW Steel's plate and pipe operations based in Baytown and coking coal operations in West Virginia.
Global rating company Fitch Ratings assigned a 'BB-', a high-yield category grade to the bonds.
Periama had borrowings of around USD960 million at end-June 2020, of which over USD800 million were loans from JSWS, according to Fitch Ratings.
“The repayment of intercompany loans from proceeds of the proposed bond should boost liquidity at JSWS,” the rating company said in note.
Last Friday, it raised Rs 4,000 crore via local bonds that offered 8.50 percent with seven-year maturity, ET reported on September 8.
JSW Steel plans to bid for the insolvent Gontermann Peipers (India), owned by Pramod and Vinod Mittal, younger brothers of Lakshmi Mittal, promoter of ArcelorMittal.
The steelmaker held a cash balance of about Rs 12,000 crore at the end of FY20.
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