Tata Steel to get $200 million loan

21 Jun 2005

Hong Kong: Tata Steel is working out a $200 million seven-year loan which it will use to expand production. It plans to build a $2.3 billion plant in the eastern Chattisgarh state. Tata steel is also aiming to triple its production to 15 million tonnes by 2010.

The International Finance Corp., the World Bank's private lending unit, is providing $100 million while other banks will co-finance the loan.

Tata will pay interest of 0.55 percentage point more than the London interbank offered rate for the loan.

The company had $1.4 billion in earnings before interest, tax, depreciation and amortization for the year ended March.