SBI to lend USD 1.5 bn to Tata Steel
SBI to lend USD 1.5 bn to Tata Steel >State Bank of India (SBI) will lend USD 1-1.5 billion more to Tata Steel UK for enabling the Tata group to refinance a part of the bridge loans taken by it for the acquisition of Corus, reports Business Standard. The loan is in addition to the USD 1 billion loan sanctioned by the bank last month. Due to the ongoing US sub-prime mortgage crisis, Tata Steel is unable to raise funds from foreign banks. The largest steel company in Indian has therefore turned to the country`s largest lender for financing support. SBI will take the enhanced exposure to Tata Steel through its overseas branches. Tatas needed refinance to pay-off USD 7.2 billion of bridge loans taken for the biggest buyout by an Indian company.
Shares of the company gained Rs 64.7, or 3.43%, to trade at Rs 1,950.7. The total volume of shares traded was 748,727 at the BSE.(1.47 pm, Friday)
