JSW Steel proposes to raise $1 billion by offshore bonds and loans
Stock Market News: India’s one of the largest steel producers, JSW Steel intends to raise $1 billion through the offshore bonds and loans. An offshore bond defined as a tax-efficient envelope that can maintain a variety of assets such as stock, shares, and mutual funds.
As of the source, the company may utilize the funds raised through the offshore bonds towards the repayment of interest, to meet the working capitals, and acquire new assets. Moreover, the steelmaker plans to declare for the Insolvent Gontermann Peipers (India).
As of the financial reports, the firm had posted an Rs. 12,000 crores cash balance sheet for the financial year 2020. Now, the firm maintained Rs. 8,754 crores cash. A source said that the firm discussed with merchant bankers for managing the issue. The officials of JSW steel said that there is no need for raising funds.
As of the source, this year, the US treasury benchmark declined by 0.70% with a loss of 338 basis points, while the six-month LIBOR decreased nearly 782 basis points to 0.31%. Treasury benchmark bonds are risk-free investments secured by the full conviction and credit of the government of the US. Both treasury and LIBOR are used to price overseas bonds and loans.
Furthermore, the offshore bond issue may launch this week. It has received approval from the shareholders. Moreover, the issue might be mature in 3 to 5 years. According to the source, JSW steel Limited firm has received a BB – rating from the international rating firm with a negative impact. However, the company reported a 5 percent growth in crude steel production in August.