Rashtriya Ispat to raise $5 bn debt

State-owned unlisted steelmaker Rashtriya Ispat Nigam Ltd (RINL) is gearing up to raise Rs 22,500 crore (USD 5 billion) through debt to part-finance its 11.5 million tonne expansion plans by March 2016, the Business Standard newspaper reported on Sunday.

The firm, which plans to spend Rs 35,000 crore for the expansion, currently runs a 3 million tonne steel plant, its chairman and managing direcor PK Bishnoi told the paper.

RINL hopes to raise the remainder through internal accruals, an initial public offering of shares and possible joint ventures with state-run Steel Authority of India and power equipment maker Bharat Heavy Electricals Ltd, it said.

RINL has already appointed consultants to conduct studies for the project and reports are expected in two months, the paper said, adding Bishnoi met close to 50 banks in Mumbai on Saturday to discuss the structure of the debt.

"BHEL is more likely to happen, SAIL is further down the line," Bishnoi told the paper, without giving details of the joint ventures.