Shares of JSW Steel soared more than 4% to hit a fresh 52-week high of ₹853.1 apiece on the BSE in Friday's trade after the company announced that its wholly-owned indirect subsidiary, JSW Steel Ohio Inc, aims to raise long-term funds to the tune of $145 million (approximately ₹1,209 crore).
In a filing to the stock exchanges, the company said that JSW Steel USA Ohio Inc is considering a proposal for raising long term funds of around 30 year’s tenor for an aggregate principal amount of $145 million.
“The Jefferson County Port Authority, a port authority and a body corporate existing under the laws of the State of Ohio 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 on or about December 20, 2023,” JSW Steel said.
The proceeds of the loan are proposed to be utilised for 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. A part of the loans will also be used for initiatives such as Caster upgrades, Auxiliary Systems, infrastructure improvements and certain ancillary equipment, JSW Steel informed the bourses.
The Bonds are subject to mandatory tender for purchase on December 1, 2028, the filing mentioned.
In May, JSW Steel USA Ohio Inc. had disclosed the plans to invest $145 million to upgrade its manufacturing operations at Mingo Junction in Ohio to meet the demand for quality steel products manufactured in the United States.
Last month, the company received the approval for $1 million in assistance from the Ohio Rail Development Commission (ORDC) to facilitate two crucial on-site rail projects at its Mingo Junction facility, which were a part of JSW Steel’s $145 million expansion proposal.
Shares of JSW Steel were trading 1.94% higher at ₹835.25 apiece on BSE at 1:09 PM.
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