JSW - DITH: "Partnering for Growth"

Deepthi | Myequity news | Date : 02-03-2019 18:15:00 IST

JSW Steel Limited, flagship Company of JSW Group ("JSW") and Duferco International Trading Holding S.A. ("DITH") have aligned their strategic goals in a landmark USD 700 million 5-year Advance Payment and Supply Agreement ("APSA") executed on the 27th February 2019.

This unique financing structure provides JSW long term funding to complement its plans for future growth secured by committed exports of steel products to DITH. For DITH the transaction assures a captive supply of various steel products from JSW over the term of the APSA.

The transaction further cements the long-term relationship between the two groups which have partnered together in various commercial ventures during the past 15 years. The deal is the largest trade finance facility to have been arranged in the Indian steel sector. In the past, JSW and DITH have entered into similar trade financing arrangements on smaller scale but for a longer term, all of which were successfully executed and completed.

The deal has been arranged and financed by the global banks BNP Paribas, Citibank, Credit Suisse, ING, Mashreqbank, Natixis, Societe Generale, Standard Chartered Bank acting as Mandated Lead Arrangers and Bookrunners. The commitment of the financing partners reflects the strong confidence held in both JSW and DITH when taking into consideration a transaction of this size and terms.


Commenting on the transaction Mr. Seshagiri Rao, JMD and Group CFO said "The structured long-term trade finance transaction is an important deal in diversifying the sources of financing for JSW Steel. This not only enables JSW to raise funds at competitive rates but also assures incremental volume of sales in export markets leveraging the wide spread global network of the DITH Group Companies. This transaction is a win-win for both the organisations".

Commenting on the transaction Mr. Matthew De Morgan, DITH Group Chief Executive Officer said "We are delighted to have concluded such a significant structured trade finance transaction; this corroborates our faith in the sustainability of steel trading and indeed is a material statement of confidence in the reliability of our partner JSW. We look forward to facilitating JSW's existing and future steel exports to a diverse and multinational customer base."

About JSW Steel:

JSW Steel Ltd. is the flagship company of the diversified JSW Group which has a leading presence in sectors such as steel, energy, infrastructure, cement, sports among others.


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