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ArcelorMittal has refinanced a loan of around $5 billion (about ₹37,000 crore), taken to acquire Essar Steel, by raising fresh funds at a lower rate.
AMNS (ArcelorMittal Nippon Steel) Luxembourg Holding SA, the parent company of the AMNS India joint venture, in partnership with Japan-based Nippon Steel Corporation, has entered into a $5.146-billion 10-year term loan agreement with Japan Bank for International Cooperation, MUFG Bank, Sumitomo Mitsui Banking Corporation, Mizuho Bank Europe NV and Sumitomo Mitsui Trust Bank (London branch).
The proceeds of the loan will be used to refinance the entire amounts borrowed by AMNS in connection with the acquisition of ArcelorMittal Nippon Steel India (formerly Essar Steel), including the amount borrowed under the $7-billion bridge term facilities agreement guaranteed by ArcelorMittal, said the company in a statement.
ArcelorMittal owns 60 per cent equity in AMNS India while Nippon Steel holds the rest in the joint venture company which acquired Essar Steel for ₹42,000 crore last December.
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