Home News Industry News JSW Steel plans to raise funds for projects by this fiscal

    JSW Steel plans to raise funds for projects by this fiscal

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    We are planning to prepay Rs 3,500 crore rupee loans by raising USD 600 million subject to the approval of the RBI. Hopefully by the end of the fiscal, we will be going for raising funds,” JSW Steel’s Joint Managing Director and CFO Seshagiri Rao said.  With the Reserve Bank of India (RBI) recently allowing raising dollar loans for prepaying rupee loans the company has sought RBI approval for availing the facility. Accordingly, domestic manufacturing and infrastructure firm can go for external commercial borrowings upto USD 10 billion after meeting certain conditions.  The approval will be valid only for three months. Our entire sales revenue is dollar-linked. Whether we sell in the domestic market or export, it is based on landed cost of imports. Therefore prepaying rupee loans by raising dollar loans is an opportunity to reduce our cost of funding by accessing international markets, he said. As on September 30, 2012, JSW’s total long term borrowings stood at about Rs 15,149 crore as on September 30, 2012, he added.

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