(FE)
Sitting on a high debt of Rs 48,500 crore at the end of the first quarter of the current fiscal, Steel Authority of India (SAIL) proposes to raise further debt by up to Rs 5,000 crore in the next one year through private placement of secured non-convertible debentures/bonds.
The company intends to use the debt to part-fund its ongoing capacity programme and convert some short-term debts into longer tenure. According to Edelweiss, SAIL has a Rs 3,200-crore debt repayment obligation in the current fiscal. SAIL also proposes to spend Rs 4,000 crore on capacity expansion this fiscal.
“On analysis of the various options of raising funds through borrowing in domestic and international markets, it has been decided by the board of directors to raise funds through private placement of secured non-convertible debentures/ bonds to the extent of Rs 5,000 crore during the year,” SAIL said in a letter to the shareholders ahead of the annual general meeting.
