Friday, 18 Feb 2011
TATA Steel, after its INR 3,477 crore follow on public offer, has secured commitments from investors to raise another INR 3,000 crore through a private placement of non convertible debentures in two tranches.
A part of this secured commitment had been raised in January for the Jamshedpur project and will continue as and when the need arises.
Mr Koushik Chatterjee Group CFO of TATA Steel told Business Standard that “The interest rate for this INR 3,000 crore NCD will be a ballpark of 9 to 9.75% and it will mature after 20 years.”
He said that “The idea is to move from high cost debt to a low cost one and with a better tenure. The company is now focusing on loan products that would give it a flexibility to repay over a long period of time, preferably 20 years, like in the case of this recent NCD.”
On a further fund raising of USD 500 million through a perpetual bond issue, which ideally is a very long term bond with interest payments that go on forever. Mr Chatterjee said that “Nothing is on the table right now.”
However, sources said that the company is looking to raise this sum through a long term bond placement.
Mr Koushik Chatterjee said that the company may launch the issue in the next three to six months.
Sources said the company was looking to raise the money from international market and will bear an interest rate of around 9%.
Mr Chatterjee made it clear that the INR 3,000 crore NCD will be used entirely for the capital expenditure of Jamshedpur and Orissa. He added that “Immediate focus is Jamshedpur expansion and commissioning and post that, the funding of the Orissa plant.”
(Sourced from BS)
Tags:Tags:TATA Steel, NCD, investors, non convertible debentures,Jamshedpur project,Orissa steel plant, Tata Steel expansion
Showing posts with label Asia steel news. Show all posts
Showing posts with label Asia steel news. Show all posts
Friday, February 18, 2011
Wednesday, February 9, 2011
SHFE rebar reflects buoyant mood in China on opening
Wednesday, 09 Feb 2011
Shanghai steel rebar futures edged up to a record as Chinese markets reopened after a week-long Lunar New Year holiday.
The most active rebar contract for October delivery was up 0.3% at CNY 5,140 per tonne by 0106 GMT, after touching an all time top of CNY 5,150 earlier.(sourced from Reuters)
Shanghai steel rebar futures edged up to a record as Chinese markets reopened after a week-long Lunar New Year holiday.
The most active rebar contract for October delivery was up 0.3% at CNY 5,140 per tonne by 0106 GMT, after touching an all time top of CNY 5,150 earlier.(sourced from Reuters)
Wednesday, January 26, 2011
Floods forces Asian steel mills to look elsewhere for coking coal
Wednesday, 26 Jan 2011Japanese and South Korea have been seeking alternative suppliers of coking coal for their steel mills since the scale of the Australian floods became apparent earlier this month.
Japanese steel mills, which last year secured more than 50% of their coking coal from Australia, are looking to North America, Africa and Indonesia. South Korea is the second-biggest importer of Australian coal after Japan.
Japanese steel mills, which last year secured more than 50% of their coking coal from Australia, are looking to North America, Africa and Indonesia. South Korea is the second-biggest importer of Australian coal after Japan.
Mongolia which has just begun to tap the world's second biggest coal seam is also expected to be a threat to Australia's market share.
Chinese imports of coking coal increased from 6.85 million tonnes in 2008 to 34.49 million in 2009. But with the world's biggest coal reserves, China, the world biggest steelmaker, has only recently become a coal importer.
Galaxy Futures analyst Ms Liu Huiru said that Australia provided about 38% of China's coal imports. She said that "Along with the recovery of the international economy, China will face competition from other countries in demand for coke. Imports from Australia, the US and Canada might decrease, while imports from Mongolia might increase, and the same with Russia.”
Mysteel.com analyst Zhu Xi'an said that major coking suppliers in China's coal producing provinces of Shanxi and Hebei had raised prices about CNY 100 (USD 15.40) a tonne since the start of the year, especially since news of the floods spread.
He said that "So far the floods are a short term effect, but if the situation in Australia does not improve by March the market here might have a stronger response."
Chinese imports of coking coal increased from 6.85 million tonnes in 2008 to 34.49 million in 2009. But with the world's biggest coal reserves, China, the world biggest steelmaker, has only recently become a coal importer.
Galaxy Futures analyst Ms Liu Huiru said that Australia provided about 38% of China's coal imports. She said that "Along with the recovery of the international economy, China will face competition from other countries in demand for coke. Imports from Australia, the US and Canada might decrease, while imports from Mongolia might increase, and the same with Russia.”
Mysteel.com analyst Zhu Xi'an said that major coking suppliers in China's coal producing provinces of Shanxi and Hebei had raised prices about CNY 100 (USD 15.40) a tonne since the start of the year, especially since news of the floods spread.
He said that "So far the floods are a short term effect, but if the situation in Australia does not improve by March the market here might have a stronger response."
(Sourced from The Australian)
Monday, January 10, 2011
Iron-ore-prices hit new eight month top as rebar futures firm
By: Reuters, 10th January 2011
SINGAPORE - Shanghai rebar futures rose to two-month peaks on Monday, showing that iron-ore prices have room to keep recent gains as firm Chinese demand lifted key indexes to their highest since May.
Chinese steel mills, the biggest buyers of the world's iron ore, have been replenishing stocks of the steelmaking raw material ahead of the Lunar New Year in February, with stronger steel prices also supporting the buying binge.
"Steel prices are increasing because traders are boosting their stocks of steel products and raw material costs, like coal, are rising," said an iron-ore trader in Rizhao in China's eastern Shandong province.
Steelmakers across Asia have been raising product prices to meet a projected increase in coking coal prices to around $300/t, the highest in two years, as supply from top exporter Australia had been disrupted by massive floods.
The most active May rebar contract on the Shanghai Futures Exchange hit a high of 4 851 yuan a ton in morning trade, a level last seen on November 11.
Firmer steel prices supported iron ore despite concerns that the coking coal shortage would impact iron-ore demand.
"The marginal buyers in the spot iron-ore market tend to be small Chinese mills, which are not exposed to the Queensland situation for their coal supply and whose domestic coal price has seen limited movement," Macquarie said in a note.
"With steel prices and production levels continuing to rise in China, these mills have capacity to pay more for iron-ore in the short term, and thus there is a strong chance the spot price could continue pushing upward until Chinese New Year."
Chinese iron-ore imports are expected to hit another record level this year after slipping 1,4% to 618,6-million tons in 2010.
Indian ore with 63,5% iron content continued to be offered at $181/t to $182/t, including freight, on Monday, traders said.
All the three major iron-ore indexes touched new eight-month highs at the close of trade on Friday.
The Platts 62% percent iron-ore index rose $1 to $175,50/t, cost and freight, and the Steel Index 62% benchmark climbed $1,3 to $172,60.
Metal Bulletin's 62% gauge jumped more than $2 to $171,43.
Forward swaps retreated as investors locked in recent sharp gains.
The January contract , cleared by the Singapore Exchange, slipped $1,50 to $173/t and the February contract fell $2,20 to $170,50. March dropped nearly $3 to $168,88.
Edited by: Reuters
SINGAPORE - Shanghai rebar futures rose to two-month peaks on Monday, showing that iron-ore prices have room to keep recent gains as firm Chinese demand lifted key indexes to their highest since May.
Chinese steel mills, the biggest buyers of the world's iron ore, have been replenishing stocks of the steelmaking raw material ahead of the Lunar New Year in February, with stronger steel prices also supporting the buying binge.
"Steel prices are increasing because traders are boosting their stocks of steel products and raw material costs, like coal, are rising," said an iron-ore trader in Rizhao in China's eastern Shandong province.
Steelmakers across Asia have been raising product prices to meet a projected increase in coking coal prices to around $300/t, the highest in two years, as supply from top exporter Australia had been disrupted by massive floods.
The most active May rebar contract on the Shanghai Futures Exchange hit a high of 4 851 yuan a ton in morning trade, a level last seen on November 11.
Firmer steel prices supported iron ore despite concerns that the coking coal shortage would impact iron-ore demand.
"The marginal buyers in the spot iron-ore market tend to be small Chinese mills, which are not exposed to the Queensland situation for their coal supply and whose domestic coal price has seen limited movement," Macquarie said in a note.
"With steel prices and production levels continuing to rise in China, these mills have capacity to pay more for iron-ore in the short term, and thus there is a strong chance the spot price could continue pushing upward until Chinese New Year."
Chinese iron-ore imports are expected to hit another record level this year after slipping 1,4% to 618,6-million tons in 2010.
Indian ore with 63,5% iron content continued to be offered at $181/t to $182/t, including freight, on Monday, traders said.
All the three major iron-ore indexes touched new eight-month highs at the close of trade on Friday.
The Platts 62% percent iron-ore index rose $1 to $175,50/t, cost and freight, and the Steel Index 62% benchmark climbed $1,3 to $172,60.
Metal Bulletin's 62% gauge jumped more than $2 to $171,43.
Forward swaps retreated as investors locked in recent sharp gains.
The January contract , cleared by the Singapore Exchange, slipped $1,50 to $173/t and the February contract fell $2,20 to $170,50. March dropped nearly $3 to $168,88.
Edited by: Reuters
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