New Delhi: JSW Steel USA Ohio is planning to raise long-term funds in the municipal bond markets in the United States, according to an exchange filing.
JSW Steel USA Ohio is a wholly-owned indirect subsidiary of home-grown steel maker JSW Steel Limited.
JSW Steel USA Ohio is considering a proposal for raising long-term funds of around 30 year’s tenor in the municipal bond markets in the USA, JSW Steel said in the filing.
“The Jefferson County Port Authority expects to issue its Economic Development Revenue Bonds (JSW Steel USA Ohio, Inc. Project), Series 2023 in the aggregate principal amount of $145,000,000 (the Bonds) on or about December 20, 2023, the proceeds of which will be utilised for extending a loan to JSW Ohio,” it said.
Jefferson County Port Authority is a port authority and a body corporate and politic organized and existing under the laws of the State of Ohio.
The Bonds will be repaid out of proceeds from repayment of loan received from JSW Ohio and the bond holders will have no recourse to the Port Authority.
In connection with the issuance and sale of the bonds, the company has agreed to provide a guarantee on behalf of JSW Ohio, which will be utilised to secure the repayment of the bonds.
The proceeds of the loan are proposed to be utilised for the purpose of financing the cost of the acquisition, construction, equipping, and installation of a vacuum tank degasser and improvements to a continuous slab casting machine including dynamic soft reduction technology.
Besides, it will also be used for other initiatives to be implemented by JSW Ohio such as caster upgrades, auxiliary systems, infrastructure improvements and certain ancillary equipment in order to provide for improvements in slab quality and slab production capabilities.
PTI
