In a bid to de-risk its balance-sheet, Essar Steel has raised $1 billion through external commercial borrowing (ECB) route. This would not only de-risk the company’s balance sheet, but also lengthen maturity and reduce interest costs. This said dollar debt has a maturity of seven years and the company intends to save Rs 450 crore annually on interest. The ECB was subscribed by group of banks led by IDBI and ICICI Bank.
The company has a total debt on its books of around Rs 23,500 crore. In the last fiscal, the RBI allowed the company to raise $430 million through external commercial borrowings (ECB).
Essar Steel is a fully integrated flat carbon steel manufacturer from iron ore to ready-to-market products. Its products find wide acceptance in highly discerning consumer sectors, such as automotive, white goods, construction, engineering and shipbuilding.
