JSW Steel USA ties up $182 million long-term financing

JSW Steel

HQ Team

October 27, 2022: JSW Steel USA, a $22 billion Indian business conglomerate, has tied-up long-term financing for $182 million to modernise its plate mill facility in Texas, according to a BSE filing.

The total $70 million gets covered under the SACE guarantee, and the balance of $112 million is a term loan from two Italian banking institutions, Intesa Sanpaolo and Banco BPM.

The US subsidiary has purchased supplies from three Italian engineering companies to improve the efficiency and productivity of its steelworks in Baytown. SACE’s Export Finance Division structured the financing.

SACE guarantee

The SACE guarantee will promote Italian exports. Intesa Sanpaolo (IMI Corporate & Investment Banking Division) acted as the SACE agent and coordinator of the commercial tranche. 

Intesa Sanpaolo and Banco BPM have acted as book-runners 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 SpA, Danieli Automation SpA, and Danieli Taranis LLC, all subcontractors of Danieli Corporation Inc. for a cutting line, rolling mill and ACC/DQ. 

Società per azioni (S.p.A.) is a form of corporation in Italy, meaning companies with shares or a public limited company.

Plate mill rolls preheated slabs to produce steel plates with thicknesses from several millimetres to several hundred millimetres.

Water treatment

The project also includes supplies from Sideridraulic for a water treatment and cooling system and Tenova for a grinding machine for the new rolling mill and related engineering services.

The total value of these suppliers’ equipment and related engineering services is over $100 million.

The next expansion will take JSW Steel’s total capacity to reach 38.5 MTPA by fiscal 2025. The company’s manufacturing unit in Vijayanagar, Karnataka, is the largest single-location steel-producing facility in India, with a capacity of 12 MTPA.

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