JSW Steel US, a subsidiary of India’s JSW Steel Limited, has secured long-term funding of $182 million from two Italy-based banks to undertake a $260 million modernization of its plate mill in Baytown, Texas, a statement of JSW Steel said on Thursday, October 27.
The funding raised from Intesa Sanpaolo and Banco BPM amounts to $182 million, of which $70 million is covered by a SACE guarantee and the balance is a term loan.
The financing was structured by SACE’s export finance division with a contribution by SACE’s Mumbai office in India, which has a long-standing relationship with JSW Steel, the statement said.
SACE is an Italian export credit agency that supports businesses through a range of tools and solutions. The SACE guarantee was provided with the intention of promoting Italian exports.
JSW Steel US’ plate mill modernization project includes supplies from Italian engineering companies Danieli & C. Officine Meccaniche SpA, Danieli Automation SpA, and Danieli Taranis LLC, all subcontractors of Danieli Corporation Inc.
The total value of equipment and related engineering services being provided by these suppliers is over $100 million, the statement said.