ArcelorMittal on Friday said that AMNS Luxembourg Holding S.A., the parent company of AM/NS India, ArcelorMittal’s 60/40 steelmaking joint venture with Nippon Steel Corporation in India, has entered into a $5 billion loan agreement with a consortium of Japanese banks.

The consortium includes Japan Bank for International Cooperation, MUFG Bank, Sumitomo Mitsui Banking Corporation, Sumitomo Mitsui Trust Bank, Mizuho Bank, and Mizuho Bank Europe N.V.

The proceeds obtained through the JBIC co-financing loan will be used to finance the expansion of AM/NS India’s annual steelmaking capacity at its Hazira plant from 9 million tonnes to 15 million tonnes.

In addition to the primary steelmaking capacity expansion, the project includes the development of downstream rolling and finishing facilities that will enhance AM/NS India’s ability to produce value-added steels for sectors including defence, automotive and infrastructure.

The expansion project, which started in October last year, upon receipt of environment permitting will create more than 60,000 jobs.