India's Tata Steel may seek 5.4-billion dollar loan: report
The world's seventh-largest steelmaker, Tata Steel, is in talks with banks for a 5.4-billion-dollar loan for its British unit Corus, a report said Saturday.
The Economic Times newspaper said BNP Paribas, HSBC Holdings and Royal Bank of Scotland may be among the banks contributing funds for the 3.5-billion-pound (5.4-billion-dollar) loan.
The report noted that Tata Steel chief financial officer Koushik Chatterjee said last month that the Mumbai-based steelmaker planned to refinance as much as 6.5 billion dollars of its long-term debt.
Tata Steel took loans to fund its 13-billion-dollar acquisition of Anglo-Dutch steelmaker Corus in 2007, just before the global financial crisis hit demand for steel.
There was no immediate company comment on the report, which cited unidentified sources with direct knowledge of the matter.
In August the company posted a consolidated net profit for the three months to June of 18.25 billion rupees (388 million dollars) against a loss of 22.08 billion rupees a year earlier.
Tata Steel, whose shares have fallen 13 percent this year, issued a cautious outlook with its results, saying the long-term sustainability of its recovery was "highly dependent on future growth in the European construction sector."
© 2010 AFP