JSW Steel has raised $400 million (₹2,800 crore) from international markets through issuance of bonds to fund its capex and refinance its existing loans and for general corporate purposes. “The notes will bear interest from October 4, 2019 to April 4, 2025 at the rate of 5.375% per annum, payable semi-annually in arrear on April 4 and October 4 in each year,” a company statement said, adding that the first payment will be made on April 4, 2020.
Moody’s Investor Service has given a rating of ‘Ba2’ to the proposed U.S. dollar senior unsecured notes, while Fitch Ratings has given ‘BB (EXP)’ to the proposed U.S. issue. Fitch Ratings said “We expect a pick-up in domestic demand from 2HFY20 after relative weakness in 1QFY20. There is limited rating headroom and demand that is weaker than our expectations could result in further margin erosion and lower sales volumes. This could have rating implications.”
“The Ba2 ratings reflect JSW’s large scale and strong positions in its key operating markets, competitive conversion costs, good product and end-market diversification, and increasing focus on value-added products and retail markets,” Kaustubh Chaubal, Moody’s V-P and senior credit officer, said. Shares of the company on the BSE declined 4.21% to close at ₹233.40 in a flat Mumbai market on Tuesday, valuing the firm at ₹56,417.93 crore.
