In a significant financial move, JSW Steel Limited has announced the issuance of secured, listed, rated, redeemable, non-convertible debentures totaling INR 2,250 crores, split into two tranches. The legal groundwork for this substantial private placement was laid by Khaitan & Co, who served as the legal counsel for the issuance.
The funds raised from this issuance will primarily support the company’s long-term objectives, including essential working capital and capital expenditure initiatives. These debentures are fortified by a first pari passu charge through hypothecation of the company’s movable fixed assets.
For the first tranche, the collateral comprises assets from the Upstream 3.8 MTPA capacity at the Vijayanagar Works in Karnataka. The second tranche is backed by the Dolvi Phase II integrated steel plant, which scales from 5 MTPA to 10 MTPA at the Dolvi Works in Maharashtra.
Key financial institutions, including Yes Bank Limited, ICICI Bank Limited, and SBI Capital Markets Limited, played a pivotal role as arrangers for this issue, underscoring the strategic nature of this financial undertaking.
