Tata Steel signed an external commercial borrowing agreement of US$ 500 million
March 7, 2006

The syndicated term loan facility was for US$ 400 million with a greenshoe option of further US$ 100 million

Today, Tata Steel signed an external commercial borrowing agreement of US$ 500 million (Japanese Yen equivalent of US$ 495 million and US$ 5 million) at Singapore for funding its growth projects and acquisitions.

The syndicated term loan facility was for US$ 400 million (or its equivalent in JPY) with a greenshoe option of further US$ 100 million (or its equivalent in JPY). Seventeen banks across various geographies participated in the aforesaid syndicated term loan facility. The issue was oversubscribed and the company exercised the greenshoe option. The loan has a door-to door maturity of seven years. The coupon of the loan will be Libor plus 45 basis points.