SAIL likely to raise $400 million from overseas lenders

State-run Steel Authority of India (SAIL) plans to borrow $400 million from overseas lenders to finance partially expansion and modernization plans of the company.

The company is likely to raise $400 million through external commercial borrowings (ECBs). To raise domestic production to 23.46 million tonnes per annum (mtpa) by 2012-13 from 14.35 mtpa at present the company has already embarked on a Rs. 70,000-crore capacity expansion plan.

Recently, SAIL has deferred the road shows of its upcoming follow-on public offer (FPO), possibly delaying the company's Rs 4,000-crore follow-on issue. The board of the company though has approved the red herring prospectus (RHP) for the FPO, has not been able to decide the timing of the offer due to the volatile markets. Earlier, the board had decided to launch the FPO by mid-June.