Deal Description

An Indian state Govt SPV with the objective of setting up an integrated steel plant intends to set up a 3 mtpa BF-BOF based steel plant project with a JV partner who was chosen through a tendering process. The product mix of the envisaged plant will be Hot Rolled Coils, with further value addition being considered during future capacity expansions. This project is backed and fully guaranteed by the State Government. The Project Capex is USD 1.80 bn (Rs. 13,548 cr.) with a Debt of USD 1.17 bn (Rs. 8,806 cr.) and Equity of USD 632 mn (Rs. 4,742 cr.) (Debt Equity Ratio of 65:35). The targeted Commercial Operations Date (COD) of the Project has been set as November 2024 (FYE 25). Project IRR at 15.6% over a period of 18 years from FY22 till FY44. Amount Required is USD 537 mn (Rs. 4,031 cr.) Nature of Funding is Cumulative Redeemable Preference Shares (Quasi Equity) Coupon Rate (.) % per annum (To be mutually discussed and agreed but influenced by RBI guidelines) Repayment Schedule - USD 93 mn (Rs. 700 cr.) in 3 annual instalments from FY26 to FY28 from the equity dilution to JV partner on the COD. USD 444 mn (Rs. 3,331 cr.) in 5 annual instalments from FY27 to FY 31 from the equity dilution to JV partner. (.)% cumulative dividend on Pref. Shares will be serviced from the Dividend income from JVC and stake sale proceeds.

No Files Attached