Tata Steel announces successful refinancing of EUR 1.75 bn of European debt

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Mumbai : Indian Steel  giant Tata Steel on Friday announced that its 100% subsidiary Tata Steel Netherlands Holdings B.V. (TSNHBV), has executed agreements for the refinancing of its bank debt.

TSNBHV has raised term loan facilities of EUR 1.75 billion from 19 banks. This represents a reduction of EUR 500 million versus the external debt outstanding in Tata Steel Europe as of Mar 2019, enabling the standalone European business to have a more robust balance sheet while it is also putting in significant efforts at restructuring and improving its operating performance. These facilities have also been contracted at favorable terms and more efficient pricing, besides extending the maturity profile relative to the existing ones.

  “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, demonstrating the strong confidence enjoyed by Tata Steel in the financial community” Koushik Chatterjee, Executive Director & Chief Financial Officer, Tata Steel said.

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