JSW Steel USA ties up with Intesa Sanpaolo, Banco BPM for $182 mn financing

Out of the total financing, $70 million is covered under SACE guarantee and the balance US$ 112 million is a term loan, the company said in a statement.

The financing was structured by SACE’s Export Finance Division with the contribution of the SACE office in Mumbai, which has a long-standing relationship with JSW Steel. The SACE guarantee is provided with the intention of promoting Italian exports.

Intesa Sanpaolo (IMI Corporate & Investment Banking Division) acted as the SACE Agent and coordinator of the commercial tranche. Both, Intesa Sanpaolo and Banco BPM acted as bookrunners and mandated lead arrangers of the two facilities.

“JSW Steel USA has purchased supplies from three Italian engineering companies for improving the efficiency and productivity of its steelworks in Baytown: Danieli, Tenova and Sideridraulic,” the company said in a statement.

JSW Steel USA’s Plate Mill Modernisation Project includes supplies from Italian engineering companies, Danieli & C Officine Meccaniche S.p.A, Danieli Automation S.p.A and Danieli Taranis LLC, all being subcontractors of Danieli Corporation Inc for a cutting line, rolling mill and ACC/DQ.

The project also includes supplies from Sideridraulic for a water treatment and cooling system, and from Tenova for a grinding machine for the new rolling mill and related engineering services.

The total value of equipment and related engineering services being provided by these suppliers is over $100 million.

JSW Steel is the flagship business of the $22-billion diversified JSW Group, which has its presence in sectors such as energy, infrastructure, cement, paints, sports and venture capital.