JSW Steel Raised $1 Billion Through SLBs in Overseas Market

SEATTLE (Scrap Monster): Steelmaker JSW Steel announced that it raised $1 billion via sustainability-linked bonds (SLBs) issued in overseas markets. It has turned out to be the first steel sector company to issue an SLB in a hard currency.

JSW Steel raised the sum of money in the US bond markets, which witnessed subscription by high quality institutional investors across Asia, Middle East, Europe and the U.S. The proceeds from the issue will be utilized towards funding capital expenditure plans and towards debt refinancing.

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The bonds comprised two tranches of 5.5 years and 10.5 years, each for a sum of $500 million. The 10.5 year tranche was issued as an SLB, with the company committing to achieve 23% reduction in carbon dioxide per tonne of crude steel produced by 2030, in comparison to 2020 levels.

Commenting on the development, Seshagiri Rao, Joint Managing Director and Group CFO, JSW Steel noted that the overwhelming response to the bonds demonstrates the stakeholders’ confidence in the company’s ongoing sustainability commitment. Incidentally, JSW Steel targets to achieve 42% reduction in carbon dioxide emission intensity, compared to 2005-baseline.