Business Standard reported that Jindal Steel has raised a bridge loan of INR 660 crore to fund its CIC Energy acquisition.

The company raised INR 550 crore from Deutsche Bank and INR 110 crore from First Rand Bank of South Africa for one year term.

The loan has been raised at 1.9% over LIBOR.

Mr Sushil Maroo, director (finance), Jindal Steel and Power said, “We had to raise this money immediately hence went for the bridge loan. Now we will look to replace this for a 5 year loan.”

Bridge loans are short term financing which the companies go for to fund any immediate need of money. These loans are then replaced by longer term borrowings.

Source -Business Standard

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