JSW Steel USA ties up with Intesa Sanpaolo and Banco BPM for US$ 182 million finance

27 Oct 2022 , 11:18 AM

JSW Steel USA, a subsidiary of JSW Steel Limited has secured long-term funding for its Plate Mill modernization project in Baytown, Texas from two Italian financial institutions, Intesa Sanpaolo and Banco BPM.

The company stated that US$ 70 million of the overall finance is covered under the SACE guarantee, while the remaining US$ 112 million is a term loan.

The finance was arranged by SACE’s Export Finance Division, with assistance from the SACE office in Mumbai, which has a long history with JSW Steel. The SACE guarantee is issued in order to promote Italian exports.

Intesa Sanpaolo (IMI Corporate & Investment Banking Division) served as SACE Agent and commercial tranche coordinator. Both Intesa Sanpaolo and Banco BPM served as the facilities’ Bookrunners and Mandated Lead Arrangers.

JSW Steel USA’s Plate mill modernization project includes supplies from Danieli & C. Officine Meccaniche S.p.A, Danieli Automation S.p.A, and Danieli Taranis LLC, all of which are Danieli Corporation Inc. subcontractors for a cutting line, rolling mill, and ACC/DQ.

The project also comprises Sideridraulic supplies for water treatment and cooling systems, as well as Tenova supplies for grinding equipment for the new rolling mill and related engineering services. These vendors’ total value of equipment and related engineering services exceeds $100 million.

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