ArcelorMittal, the world’s second largest steelmaker, has inked agreements with a clutch of Japanese banks to raise a $5 billion loan to fund the proposed expansions undertaken by the company’s subsidiary in India. AM/NS India, the 60:40 joint venture between ArcelorMittal and Nippon Steel, has chalked out an ambitious plan to expand the steel making capacity at Hazira, Gujarat, from 9 million tonnes to 15 MT. The loan from the Japanese banks will be used to part finance the project and a bunch of other associated investments.
The agreement was signed between AMNS Luxembourg Holding S.A, the parent company of AM/NS India, and Japan Bank for International co-operation (JBIC), along with MUFG Bank, Sumitomo Mitsui Banking Corporation, Sumitomo Mitsui Trust Bank, Mizuho Bank and Mizuho Bank Europe N.V. In addition to the primary steelmaking capacity expansion, the project includes the development of downstream rolling and finishing facilities that will enhance AM/NS India’s ability to produce value-added steels for sectors including defence, automotive and infrastructure.