Tata Steel signs pacts to refinance loans in Europe

Tata Steel signs pacts to refinance loans in EuropeThe Indian firm Tata Steel has said it has signed agreements to refinance its operations in Europe.

The Tata Steel UK Holdings, which is a 100% indirect subsidiary of Tata Steel Limited, has signed an agreement with a syndicate of 13 banks in Europe for a 3.53 billion pounds term loan and revolving credit facility.

The deal will replace in full the current term loan and revolving credit facilities entered in to at the same time of its takeover of the Corus Group in the year 2007.

The refinancing is designed in two ways one is a 5 year loan of around 1.5 billion pounds and another is a 7 year loan of around 1 billion pounds.

The revolving credit facilities also increased to 690 million pounds and it will have a tenor of 5 years. The State Bank of India and Standard Charted Bank led the refinancing agreements initially and then 11 more banks joined in to the syndicate of the new financing agreements.

The other banks include ICICI bank, HSBC Bank, BNP Paribas, Bank of America and Credit Agricole etc.