Tata Steel is in talks to raise as much as $400mn in what could be the steelmakers’ first green loan. Tata Steel has been making efforts to be carbon neutral and plans to start producing green steel or steel made without using fossil fuels in 2030 as its plant in Ijmuiden, Netherlands.
The debt could have a tenure of about five years and the funds raised would be used for capital expenditure. The details are not final and might change saying lenders for the loans include Bank of America Corp, HSBC Holdings, JP Morgan Chase & Co and Mitsubishi UFJ Financial Group.
While the company is continuously evaluating the developments and options in the green financing space there is nothing concrete. It continues to focus on deleveraging plan and further repayments beyond the $4.5 bn deleveraging achieved in the last 3 years.
