RINL to raise INR 22500 crore debt to fund expansion projects

New Delhi: PTI reported that Rashtriya Ispat Nigam Limited will raise INR 22,500 crore long term debt in tranches to increase its steel making capacity to 11.3 million tonnes per annum by 2015-16.

Mr P Madhusudan director finance of RINL told PTI that 'Our existing steel making capacity is 3.6 million tonnes per annum. This is going to go up to 6.3 million tonnes per annum by this fiscal. We don't need any fund here. We will raise INR 22,500 crore debt in the next 3 to 4 years to fund capacity expansion from 6.3 million tonnes per annum to 11.3 million tonnes per annum by 2015-16.'

RINL has invited around 45 lenders, both domestic and international, to present its future vision in Mumbai on the first week of the next month.

Mr Madhusudan said that 'It will be an initial meeting with prospective lenders. We have invited both domestic and international banks. We will present our vision and request the lenders to submit their expression of interests for our debt raising program.'

He, however, said that the company would borrow the fund from lenders which would give the best competitive rates and lay down softer terms and conditions, be they domestic or international.

He added that the instruments to be used for raising debt would be decided on the basis of lenders' response to EoI.