March 17, 2020 / 6:41 AM / 11 days ago

ArcelorMittal, Nippon Steel sign $5.15 billion loan pact to refinance Essar Steel buy

FILE PHOTO - The logos of Nippon Steel Corp. are didplayed at the company headquarters in Tokyo, Japan March 18, 2019. Picture taken March 18, 2019. REUTERS/Yuka Obayashi

TOKYO (Reuters) - Japan’s biggest steelmaker Nippon Steel Corp (5401.T) said on Tuesday its joint venture with ArcelorMittal (MT.AS) has signed a $5.15 billion (4.21 billion pounds) loan agreement with Japanese banks, including Japan Bank for International Cooperation.

The 10-year-term loan would be used to refinance their acquisition of Essar Steel India, now known as ArcelorMittal Nippon Steel India Ltd.

Other banks part of the loan pact are MUFG Bank Ltd, Sumitomo Mitsui Banking Corp, Mizuho Bank Europe N.V. and Sumitomo Mitsui Trust Bank Ltd (London Branch), Nippon Steel said in a statement.

Last November, India’s Supreme Court cleared the path for ArcelorMittal to take over bankrupt Essar Steel, following a legal tussle that had dragged through multiple courts for over two years.

Reporting by Yuka Obayashi; Editing by Aditya Soni

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