SAIL plans to raise at least Rs 250 crore via bonds

State-run Steel Authority of India (SAIL) is planning to raise at least Rs 250 crore via 10-year and 15-year bonds. The country's largest domestic steel producer has called for bids in the 8.90-9.30 percent range for the 10-year bonds and in the 9.10-9.40 percent for the 15-year bonds. The bids are to be submitted on August 10 and the pay-in date is 17 August. The issue has been rated ‘CARE AAA’ by CARE and ‘AAA(ind)’ by FITCH.

Recently, SAIL planned to form a joint venture with National Fertilisers (NFL) for its proposed Rs 4,450 crore-urea manufacturing plant at Sindri, Jharkhand, in which the steelmaker will retain the majority stake. NFL was the likely partner for SAIL's fertiliser plant and nothing concrete has been decided yet. Depending on the outcome of the detailed project report (DPR) the shareholding pattern of the proposed venture would be worked out on a later date.

SAIL received the Cabinet Committee on Economic Affairs’ nod for its plan for setting up plants for manufacturing of steel and fertiliser, and generation of power at the closed Sindri facility of erstwhile Fertiliser Corporation of India. The company plans to invest around Rs 35,000 crore to set up 5.6 mtpa steel making plant, 1.15 mtpa fertiliser plant and a power plant of suitable capacity.