JSW Steel, Duferco International ink USD 700 million pact

The deal is the largest trade finance facility to have been arranged in the Indian steel sector.

Published: 02nd March 2019 11:52 PM  |   Last Updated: 03rd March 2019 01:25 AM   |  A+A-

JSW

The logo of JSW is seen on the company's headquarters in Mumbai, India. (File photo | Reuters)

By PTI

NEW DELHI: JSW Steel Saturday said it has inked a 5-year advance payment and supply agreement with Duferco International Trading Holding for USD 700 million.

The pact executed on 27 February entails a financing structure, which will provide "JSW long term funding to complement its plans for future growth secured by committed exports of steel products to DITH," JSW Steel said in a statement.

For Duferco International Trading Holding (DITH) the transaction assures a captive supply of various steel products from JSW over the term of the advance payment and supply agreement.

"The transaction further cements the long-term relationship between the two groups which have partnered together in various commercial ventures during the past 15 years. The deal is the largest trade finance facility to have been arranged in the Indian steel sector," the statement said.

In the past, JSW and DITH have entered into similar trade financing arrangements on a smaller scale but for a longer term, all of which were successfully executed and completed. 

The deal has been arranged and financed by the global banks - BNP Paribas, Citibank, Credit Suisse, ING, Mashreqbank, Natixis, Societe Generale, Standard Chartered Bank acting as Mandated Lead Arrangers and Bookrunners, the statement said.

"The structured long-term trade finance transaction is an important deal in diversifying the sources of financing for JSW Steel. This not only enables JSW to raise funds at competitive rates but also assures incremental volume of sales in export markets leveraging the widespread global network of the DITH Group Companies," Seshagiri Rao, JMD and Group CFO said.

JSW Steel is the flagship company of the diversified USD 13 billion JSW Group.

Stay up to date on all the latest Business news with The New Indian Express App. Download now
(Get the news that matters from New Indian Express on WhatsApp. Click this link and hit 'Click to Subscribe'. Follow the instructions after that.)

Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp