Jindal Steel Odisha taps SBI for USD1.99bn project financing

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Jindal Steel Odisha taps SBI for USD1.99bn project financing

Jindal Steel & Power’s subsidiary, Jindal Steel Odisha, has secured a loan from the State Bank of India (SBI) for INR157.27 billion (USD1.99 billion) in one of the largest project financing transactions in this sector to date.

Gravitas Legal assisted Jindal Steel Odisha in reviewing and finalising the financing and security documents required between the company and the SBI.

The deal team comprised founder and partner Tanuj Sud, principal associate Ajay Kumar, senior associate Navroop Bhatia as well as associate Harshita Ahluwalia.

“It was a bit of a roller-coaster ride with constant to and fro on critical terms but it was an absolutely enriching experience. Towards the end of the deal, everyone worked at breakneck speed to ensure a smooth closure despite the short time frame and evolving market conditions,” Sud, founder and partner at Gravitas told India Business Law Journal.

He further said, “Given the multitude of terms and conditions in view of the scope and size of the funding, reconciling various aspects and balancing the interests of the borrower while adhering to the law and terms representing the overall framework for this financing was particularly challenging but, most importantly, extremely interesting.”

Cyril Amarchand Mangladas & Co acted as the legal counsel to the SBI. Partner and co-head of banking and finance Amey Pathak, partner Yash Jain, along with principal associate Arkoday Roy, and associate Soumya Khurana were the members of the deal team.

The funds will be used to establish an integrated steel plant at Angul, Odisha, with a capacity of 6 million tonnes per annum at an estimated project cost of INR224.68 billion.