Tata Steel’s wholly owned European subsidiary Tata Steel Netherlands Holdings B.V. (TSNHBV) has executed agreements for the refinancing of its bank debt.
The company has raised term loan facilities of €1.75 billion from 19 banks.
“This represents a reduction of €500 million versus the external debt outstanding in Tata Steel Europe as of March 2019, enabling the standalone European business to have a more robust balance sheet, while also putting in significant efforts at restructuring and improving its operating performance,” the company said in a statement.
These facilities have also been contracted at ‘favourable terms and more efficient pricing’, besides extending the maturity profile relative to the existing ones.
Koushik Chatterjee, executive director and chief financial officer, Tata Steel, said “The new financing has more flexible terms and better pricing that will provide greater financial headroom to the business in the coming years. The company was able to complete this financing despite all the volatility in the financial markets.”
