Sajjan Jindal-headed JSW Steel has raised fresh funds of about ₹2,000 crore through a private placement of 10-year bonds at 8.79 payable semi-annually.
The Committee of Directors of Board in a meeting held on Friday approved the allotment of 20,000, 8.79 per cent rated, listed, secured, redeemable, non-convertible debentures bearing a face value of ₹10 lakh each at par to the investors identified by the Committee aggregating to ₹2,000 crore, said the company in a statement.
The fund will be used for meeting long-term working capital requirements, refinancing of existing debt, general corporate purpose and ongoing capital expenditure, it added.
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The fund-raising by JSW Steel comes amid fear of prolonged slow down in the steel sector and bank funding chocked up. The industry has to shell out a higher interest rate on their loans despite RBI cutting benchmark consistently in the last few months.
Late last month, JSW Steel had raised $400 million in the dollar from global debt investors. It offered a coupon of 5.375 per cent, making its the second issuance this fiscal.
The fund-raising was part of the $1 billion fund-raising plan approved by the company's board early this year and is the second tranche, having already mopped up $500 million in April, the company said.
The proceeds from the $400 million bond sale will be used for capital expenditure and other corporate purposes following the foreign exchange management rules of the central bank.
The company's issue was rated Ba2 by Moody's and BB by Fitch and will be traded on the Singapore exchange. The five-and-a-half-year bond was issued on October 4 and will mature on April 4, 2025, and investors will be offered 5.375 per cent per annum, payable half-yearly, the company said.