Arcelormittal Nippon Steel India in talks for $1 bn loan to fund growth

Arcelormittal Nippon Steel (AM/NS) India, a joint venture between two of the world’s leading steel makers, is in talks with banks to raise about Rs 8,500 crore ($1 billion), according to people familiar with the matter, in what could be the biggest local-currency loan this year to fund the firm’s expansion. At least three lenders including State Bank of India, ICICI Bank, and Axis Bank would be participating in the syndicated deal, with proceeds to be used for capital expenditure, said the people who asked not to be identified for discussing private information. SBI, India’s top bank, could lend more than half of the loan, which may carry a tenor longer than five years and be priced against a local interest rate benchmark, they said, adding that details of the lending facility are not finalised and may change. If the deal materialises, it would be the country’s largest rupee-denominated loan in 2024 so far, Bloomberg-compiled data show. India’s fourth-biggest manufacturer of flat steel — used in everything from consumer goods to cars — is seeking to ramp up capacity as a widely-anticipated reelection by Prime Minister Narendra Modi may spur infrastructure spending in the world’s most-populated nation.ArcelorMittal Nippon Steel India, State Bank of India, ICICI Bank and Axis Bank did not immediately reply to e-mailed requests seeking comment.