JSW Steel raises $250 million through overseas bond sale
JSW Steel will use the proceeds from the overseas bonds sale to repay existing debt and for general corporate purposes
December 15, 2020 / 11:48 AM IST
JSW Steel said on December 14 that it had raised $250 million through a bonds sale overseas, an addition to its issuance in October when it raised $500 million.
The transaction was done through Periama Holdings, a subsidiary of JSW Steel.
"The board of directors of Periama Holdings, LLC (the "Issuer") being a company incorporated under the laws of Delaware and being a wholly owned indirect subsidiary of JSW Steel Limited (the "Company"), have approved the issuance of US $250 million aggregate principal amount of its 5.95 percent. notes due 2026 (the "Additional Notes") which are guaranteed by the Company (the "Issue")," the company said in a BSE filing.
Also read: JSW Steel Q2 profit falls 37% to Rs 1,595 crore
Proceeds from the transaction will be used to repay existing debt and for general corporate purposes, the company said. Standard Chartered, Deutsche Bank, Credit Suisse assisted the steelmaker with the transaction.
The bonds might have obtained an order book that is three times higher than the actual size, according to a report by The Economic Times.
Real money investors had placed bids worth around $1 billion, chasing $250 million on similar terms and price, bankers told the publication.
JSW Steel's credit profile will remain unaffected by the tap offering on the existing $500 million senior unsecured notes issued in October 2020, Moody's Investors Service said in a note on December 14.
"The tap offering will constitute a further issuance and will be fungible with and consolidated to form a single series with the $500 million senior unsecured 5.95 percent notes, which come due in April 2026," Moody's said.