JSW Ispat signs $1.4 bn debt refinancing deal

JSW Ispat Steel has signed a deal to refinance Rs 6,150 crore (USD 1.4 billion) of debt, enabling the company to come out from a corporate debt restructuring programme, two sources with direct knowledge of the matter said.

The company, formally controlled by the brothers of billionaire Lakshmi Mittal, who heads the world's largest steelmaker ArcelorMittal, was taken over by JSW Steel last year after it ran up big losses.

Steel maker JSW Ispat, which had posted a net loss of Rs 740 crore for the six months ended last December, had debt of Rs 7,157 crore as of June 30.

SBI Capital Markets, a unit State Bank of India, and Bank of India are arrangers to the deal, the sources told Reuters on Tuesday.

JSW Steel, in which Japan's JFE Holdings owns 14.8%, had bought a controlling stake in Ispat for USD 476 million to expand its operations.