ArcelorMittal SA on Friday said its Indian steelmaking joint venture with Asian peer Nippon Steel Corp has entered into a $5 billion loan deal with a consortium of Japanese lenders.
The proceeds would be used to fund the expansion of the JV's annual steelmaking capacity at its Hazira plant in India to 15 million tonnes from 9 million tonnes, the European steelmaker said in a statement.
The expansion would include the development of downstream rolling and finishing facilities for a string of sectors including defence, automotive and infrastructure, and add 60,000 jobs, it said.
The JV, called AM/NS India, is owned by AMNS Luxembourg Holding SA, in which ArcelorMittal holds a 60% interest and Nippon Steel the rest.
The Japanese banks include Japan Bank for International Cooperation, MUFG Bank, Sumitomo Mitsui Banking Corp, Sumitomo Mitsui Trust Bank, Mizuho Bank, Mizuho Bank Europe NV.