JSW Steel secures financing to modernize plate mill facility in Baytown

JSW Steel has secured $182 million in financing from Intesa Sanpaolo and Banco BPM to modernize its plate mill facility in Baytown, Texas.

The Indian steelmaker entered into a long-term financing agreement in this connection with the two Italian banks through its subsidiary JSW Steel USA.

According to JSW Steel, $70 million of the financing is covered under a guarantee from the Italian export credit agency SACE and the remaining $112 million is a term loan.

JSW Steel USA is said to have procured more than $100 million worth of equipment and related engineering services from three Italian engineering firms — Danieli, Sideridraulic, and Tenova – to increase the capabilities and output of its plate mill facility in Baytown.

Danieli is providing its services for a cutting line, rolling mill, and accelerated cooling system/direct quench (ACC/DQ), while Sideridraulic is supporting water treatment and cooling systems. Tenova is catering to a grinding machine for the new rolling mill and associated engineering services.

The SACE guarantee is being given with the purpose of promoting Italian exports, according to JSW Steel.

Intesa Sanpaolo’s IMI Corporate & Investment Banking division, has served as SACE Agent and commercial tranche coordinator.

Banco BPM and Intesa Sanpaolo have served as book-runners and mandated lead arrangers of the two facilities.

JSW Steel is an Indian multinational steel manufacturer based in Mumbai and is a flagship business of the $22 billion JSW Group.