JSW Steel’s $275-million overseas borrowing process is likely to get completed by next month, a senior official said today.

The funds raised through this overseas borrowing issue will be utilised for funding the outstanding foreign currency convertible bonds worth $274.40 million, which are redeemable on June 28 this year.

“We have already launched the $275 million ECB. $200 million is already tied up and we are also confident of getting tied up in the green shoe option. We have 45 days and expects to be completed in the next month,” JSW Steel Joint Managing Director and CFO, Mr Seshagiri Rao told PTI.

On February 21, JSW Steel said that it plans to raise up to $275 million through overseas borrowings, including a green-shoe option of $75 million.

Green shoe means that JSW can increase its fund raising by $75 million, if the response is higher than expected. The lenders of the ECB facility would have the option to convert the whole or part of the loan into equity shares of the company, it said.

The company has kept the conversion price of loan into equity shares at Rs 892.99 apiece, which is 10 per cent above the floor price and is in accordance with the rules laid down by Finance Ministry for issue of such convertible instruments.

As on March 31, 2011, JSW had an outstanding FCCBs worth $274.40 million, which are redeemable on June 28 this year, its annual report for FY’11 showed.

Shares of the company closed today at Rs 810, higher by 2 per cent on the NSE.

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