SAIL raises Rs 400 crore via bonds

Steel Authority of India (SAIL) has raised Rs 400 crore via 10-year bonds at a coupon rate of 9.30 percent. The state-run company has returned to the bond market after scrapping a planned issue to raise Rs 250 crore via a 10-year tenor offering.

Recently, SAIL board had accorded in-principle approval for setting up 10 steel processing units (SPU) in different states across the country.  The SPUs will be launched in states like Bihar (Bettiah, Mahnar and Gaya), Assam (Guwahati), Uttar Pradesh (Lakhimpur), Jammu and Kashmir (Srinagar) and Himachal Pradesh (Kangra).

The board of directors of the company had also accorded final approval to the SPUs at Bettiah and Kangra for implementation. Currently there wasn't any proposal for setting up an SPU in Chhattisgarh.  At the beginning of the year, the company was examining the prospects of setting up a steel processing unit in Uttar Pradesh. SAIL would be examining the feasibility of setting up a steel processing unit at Barabanki/Gonda.