Tata Steel Odisha’s project financing loan largest ever on record

PTI Updated - June 11, 2013 at 05:21 PM.

Tata Steel Odisha’s Rs 22,800 crore project financing loan is the largest project financing loan on record, global deal tracking firm Dealogic says.

Tata Steel on May 22 said it has closed project financing for the Odisha project and it recently got funding commitment from a consortium of 21 banks for Rs 22,800 crore.

The new Greenfield six million tonne steel plant in Odisha’s Kalinganagar is likely to be implemented in two phases of 3 million tonne each.

Meanwhile, the India project financing loan volume stood at $14.7 billion in 2013 so far this year up 13 per cent from $12.9 billion lent in the same period in 2012.

In contrast, the Asia (excluding Japan) project finance loan volume stood at $19.9 billion in 2013 so far this year, down 30 per cent on the $28.5 billion borrowed in 2012 year-to-date and marks the lowest YTD level since 2007 ($11.4 billion).

Deal activity at 75 deals in 2013 YTD is down from 105 signed in same period 2012 and the lowest deal count since 2009 YTD (46 deals).

State Bank of India lead the Asia (excluding Japan) syndicated loan book-runner ranking in 2013 so far this year with a 22.5 per cent market share, followed by Bank of China Ltd and Standard Chartered Bank with 7.6 per cent and 4.4 per cent shares, respectively.

Published on June 11, 2013 11:51