Citigroup (NYSE:C) and Bank of America (NYSE:BAC) are part of a consortium of 13 banks which have entered into an agreement with Tata Steel (NSE:TATASTEEL.NS) to raise over 3.53 billion pounds.
The proceeds of the loan will be used to refinance the loan Tata took out to fund part of its deal to acquire Corus.
Leading the deal are Standard Chartered and State Bank of India.
Tata Steel Europe MD & CEO Kirby Adams said about the financing, "Lenders to Tata Steel showed confidence by supporting the company''s plans to weather the financial crisis. ...it is very satisfying that another key strategic objective of the company - the securing of a sound and more favourable financing structure for the future - is being achieved."
The financing structure of the deal includes two parts. One a 5-year loan close to GBP 1.8 billion and a 7-year loan of GBP 1 billion.
Citigroup participated via its Citicorp Securities Asia Pacific unit.
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