Kolkata: Tata Steel Netherlands Holdings B.V. (TSNHBV), a 100% subsidiary of Tata Steel Limited, has executed agreements for the refinancing of its bank debt, an official statement from Tata Steel on Friday night said.

“TSNBHV raised term loan facilities of EUR 1.75 billion from 19 banks. This represents a reduction of EUR 500 million versus the external debt outstanding in Tata Steel Europe as of March 2019,” the statement said. This will enable the standalone European business to have a more robust balance sheet while it is also putting in significant efforts at restructuring and improving its operating performance, the statement added.

“These facilities have also been contracted at favorable terms and more efficient pricing, besides extending the maturity profile relative to the existing ones,” the statement said.

Commenting on it, Koushik Chatterjee, Executive Director & Chief Financial Officer, Tata Steel said: “The new financing has more flexible terms and better pricing that will provide greater financial headroom to the business in the coming years.”

The company was able to complete this financing despite all the volatility in the financial markets, demonstrating the strong confidence enjoyed by Tata Steel in the financial community, the statement added.

Source link