Tata Steel refinances euro 1.75 bn debt 

Our Bureau Mumbai | Updated on January 10, 2020 Published on January 10, 2020

Higher operational and finance costs impacted the profit

Tata Steel has announced that Tata Steel Netherlands Holdings BV, a wholly-owned subsidiary of Tata Steel, has executed agreements for the refinancing of its bank debt.

TSNBHV has raised term loan facilities of euro 1.75 billion from 19 banks. This represents a reduction of euro 500 million versus the external debt outstanding in Tata Steel Europe as of March 2019.

The fresh arrangement will enable  the standalone European business to have a more robust balance sheet. The company is also putting in significant efforts to restructure and improve its operating performance.

These facilities have also been contracted at favourable terms and more efficient pricing, besides extending the maturity profile relative to the existing ones.

Koushik Chatterjee, Executive Director & Chief Financial Officer, Tata Steel said 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 the financing despite the volatility in the financial markets, he said.

Published on January 10, 2020
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