BS reported that JSW Ispat Ltd has completed the INR 6,000 crore debt refinancing deal. A source close to the development confirmed the new average interest rate for the refinance is 11.75% lower than the earlier rates.

The lead bankers for this term loan are Bank of India, Canara Bank and Punjab National Bank. Sources said that “The term loan is approved by a consortium of 10 banks. The State Bank of India has not taken any exposure in the term loan.”

The earlier loans to Ispat were between 14% and 19% and the new loan terms will give some benefit in terms of cost savings to JSW Ispat. JSW Steel refused to comment on the development.

With this refinance, Ispat is finally out of the corporate debt restructuring process. The major lenders to Ispat prior to the refinance were IDBI Bank with INR 3,000 crore, ICICI Bank Ltd (INR 1,800 crore) and IFCI Ltd with INR 1,500 crore. Ispat owned INR 2,000 crore to SBI as part of its working capital requirements.

The company official, requesting anonymity, said out of the INR 6,000 crore, around INR 900 crore is the margin money for the working capital and SBI is the lead banker for the loan. SBI has no exposure in the INR 6,000 crore term loan.

(Sourced from BS)