Tata Steel All Set To Mobilize $2.3 B For Corus Payment

Tata Steel is all set to mop up $2.3 billion (about Rs 10,000 crore) in the coming few months to part finance its $12.9-billion acquisition of Anglo-Dutch steel maker Corus. The money is being raised through two rights issues and an overseas issue. The $2.3 billion that Tata Steel will be raising is part of the company''s committed equity contribution of $4.1 billion (Rs 17,750 crore) for the Corus acquisition. The remaining $8.8 billion will be financed through a non-recourse debt arranged by a consortium of banks for $6.14 billion at Tata Steel UK (the SPV for the buy-out) and the balance $2.66 billion raised in the form of bridge finance by its subsidiary Tata Steel Asia Singapore. Tata Steel maintains that its contribution of $4.1 billion for the acquisition will not affect its own greenfield and brownfield projects in India, as its own cash flows are robust enough. Out of its share of $4.1 billion, Tata Steel has already invested about $1.8 billion (Rs 7,900 crore).