Tata Steel on Thursday said that it had secured the largest ever loan for an Indian company.
It plans to take out pound 3.67 billion ($7.29billion) in loans as part of its long-term funding arrangements for taking over Anglo-Dutch steel major Corus.
Tata was expected to finance a large portion of its pound 6.6 billion Corus buy with a long-term high-yield bond facility, arranged by Deutsche Bank, Credit Suisse and ABN Amro.
However, according to a report published in the Financial Times the company has taken advantage of high liquidity in the leveraged loan market to refinance its pound 3.62 billion short-term bridge facility with cheaper, long-term financing arranged by Citigroup, Standard Chartered and ABN Amro.
The revamped financing package includes long-term debt of pound 3.17 billion and a revolving five-year facility of pound 500 million.
The FT report further said the long-term debt comprises a pound 1.67 billion five-year syndicated bank loan to be repaid at regular intervals, and a further pound 1.5 billion loan that will be offered to institutional investors and banks and which will be repayable after seven years.