Indian steel Corporation JSW Steel limited signed an agreement with a Swiss-registered international trading company Duferco International Trading Holdings to receive a record in the history of the national steel industry commodity credit in the amount of $700 million.
JSW Steel in the next five years will repay this loan supplies steel products to be sold through the sales network of Duferco. The deal was made and financed with participation of a group of international banks – BNP Paribas, Societe Generale, Citibank, Credit Suisse, ING, Mashreqbank, Natixis, Standard Chartered Bank.
According to managing Director of JSW Seshagiri RAO, due to the conclusion of this transaction, the company will be able to diversify sources of funding its projects, to raise funds on competitive terms, and to expand their exports.
In recent months, JSW Steel and other Indian steel companies, faced with the deterioration in the external environment, which was forced to reduce exports of steel products and the volume of its production.
In 2006 JSW and Duferco have already entered into a similar agreement. But then it was about $150 million, which would be repaid within seven years.
Currently, the production capacity of JSW Steel is 18 million tonnes of steel per year, but the Corporation plans to increase this figure to 40 million tons within ten years. Sales Duferco last year amounted to about 12 million tons.