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ESL expects to achieve financial closure soon
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Tuesday, 13 Nov 2012
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The 2.51 million tonne per annum Greenfield Integrated Steel Plant at Bokaro, Jharkhand from Electrosteel Steels Limited, the associate company of Electrosteel Castings Limited is expecting to achieve financial closure by end November 2012.

ESL is expected to close the transaction of this long term project funding of INR 2300 crore through a debt syndication comprising of credible financial institutions.

The lead Banker is The State Bank of India and the financial advisor for the fund rising is SBI Capital Markets Ltd. The Company has also arranged and invested the balance required Equity of INR 412 crore.

Mr Ashutosh Agarwal executive director and finance of Electrosteel Steels Limited said that “We are extremely content to know that we have acquired significant confidence in the minds of our financiers. Such quick financial closure will reinforce the reliance and support of the lending institutions in our credibility and expertise in project execution and commission.”

Mr Agarwal said that “The per capita steel consumption is much lower than the world average and outlay from infrastructure in Indian steel consumption is expected to go up by leaps and bounds. Current steelmaking capacity for India is 67 million tonne approximately and by 2020 it is planned to increase the capacity in the tune of 120 million tonne. In this backdrop, this Greenfield Integrated Steel Plant being one of the key primary steel producers from the east is slated to cater to the growing need of steel of the country.”

The plant will constitute a product mix of long products like wire rod, TMT bars, ductile iron pipes, billets and pig iron. Having adequate raw material linkages and strategic location supported by leading Chinese Consultation Agency for supply of technology & engineering, the plant have ensured a lower Cost of Project than that of the usual industry figure which forecasts better profitability. The plant has already commenced its production of TMT Bars, Pig Iron, DI Pipes, Sinter and Coking Coal.

Source - Electrosteel Steels Limited

(www.steelguru.com)

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