Two Italian banks to finance USD 182 million for JSW Steel USA’s Plate Mill modernization in Texas

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Biznextindia : JSW Steel USA, a subsidiary of India’s JSW Steel Limited  has tied-up long-term financing with two Italian banking institutions, Intesa Sanpaolo and Banco BPM, for its Plate Mill modernisation project in Baytown, Texas.

Out of the total financing, US$ 70 million is covered under SACE guarantee and the balance US$ 112 million is a term loan. The financing was structured by SACE’s Export Finance Division with the contribution of the SACE office in Mumbai, which has a long-standing relationship with JSW Steel. The SACE guarantee is provided with the intention of promoting Italian exports. Intesa Sanpaolo (IMI Corporate & Investment Banking Division) acted as SACE Agent and coordinator of the commercial tranche. Both, Intesa Sanpaolo and Banco BPM, have acted as Bookrunners and Mandated Lead Arrangers of the two facilities. JSW Steel USA’s Plate mill modernisation project includes supplies from Italian engineering companies, Danieli & C. Officine Meccaniche S.p.A, Danieli Automation S.p.A, and Danieli Taranis LLC, all being subcontractors of Danieli Corporation Inc. for a cutting line, rolling mill and ACC/DQ. The project also includes supplies from Sideridraulic for a water treatment and cooling system and from Tenova for a grinding machine for the new rolling mill and related engineering services. The total value of equipment and related engineering services being provided by these suppliers is over $100 million.

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