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Essar Steel(ESL) has mandated Barclays Capital and State of India(SBI) to syndicate external commercial borrowing (ECB) of around Rs 540 crore($120m). The funds will be used for expanding ESLs capacity from 3m tonnes per annum to 4.6m tonnes.Company officials confirmed the development .An ESL official said road shows for the borrowing programme are underway, adding that the company may raise another Rs 135 crore ($30m) under the green shoe option.The loans will be syndicated at London Inter Banking Offering Rate (Libor) plus 255 bps. Currently the three month Libor stands at 4.71%. ECBs are not percieved as a cheaper oeration than local borrowings, because of rising global interest rates. |
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| Posted : 2/14/2006 |
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