JSW Steel plans to raise up to $750 million from foreign investors

New Delhi: Sajjan Jindal-led JSW Steel is looking to raise up to USD 750 million (about Rs 5,032 crore) from international markets. In this regard, a meeting of the Board of Directors has been convened. It will be held on July 27, 2016, the company said in a regulatory filing.

"In the aforesaid meeting, the Board would also be considering raising of long-term funds through issuance of non-convertible senior unsecured fixed rate bonds denominated in foreign currency or rupee for up to USD 750 million in the international markets," it added.

Last month, the steelmaker had said it will approach shareholders to raise up to USD 2 billion from global capital markets to meet its long-term capex requirement and loan refinancing, among others.

It is in the interest of the company to raise long-term resources with convertible option so as to optimise capital structure for future growth, it had said. "The proceeds of the issue will be used for long-term funding to meet the planned capital expenditure and for other corporate purposes, including refinancing of expensive debt to reduce interest costs and to meet any unlikely shortfall in unforeseen circumstances," JSW Steel added.

Recently, the company completed its present brownfield expansion to reach 18 million tonne per annum (MTPA) capacity and it has a strategic vision to reach 40 MTPA by 2025 with significant investment in mineral resources -- iron ore and coal.