AMNS Luxembourg Inks $5 Bln Loan Deal with Japanese Banks to Fund India JV

REUTERS/Francois Lenoir
Workers stand near the logo of ArcelorMittal, the world’s largest producer of steel, at the steel plant in Ghent, Belgium, July 7, 2016.

BENGALURU (Reuters) – ArcelorMittal SA MT.LU on Friday said AMNS Luxembourg Holding S.A., the parent company of ArcelorMittal Nippon Steel India (AM/NS India), has entered into a $5 billion loan deal with a consortium of Japanese lenders.

The proceeds would be used to fund the expansion of AM/NS India’s annual capacity at its Hazira plant in India to 15 million tonnes from 9 million tonnes, the European steelmaker said in a statement.

The expansion would include the development of downstream rolling and finishing facilities for a string of sectors including defense, automotive and infrastructure, and add 60,000 jobs, it said.

ArcelorMittal Nippon Steel India is a 60/40 joint venture between ArcelorMittal and Nippon Steel Corp 5401.T, owned by AMNS Luxembourg Holding S.A.

The Japanese banks include Japan Bank for International Cooperation, MUFG Bank, Sumitomo Mitsui Banking Corp, Sumitomo Mitsui Trust Bank, Mizuho Bank, Mizuho Bank Europe NV.