Stemcor tests Asian appetite

UK steel trader Stemcor has mandated eight international banks to tap the Asian revolving credit facility market for a relatively low US$75mn.

The Stemcor group, working from its Singapore-based hub, has called in ABN Amro, BNP Paribas, DBS, HSBC, ING, Société Générale, Standard Chartered and United Overseas Bank to arrange the facility.

The funding will be used for working capital requirements and general corporate purposes.

Michael Broom, group treasury and risk director for Stemcor Holdings, comments to GTR: “We are seeking to tap into additional liquidity available in the Far East. 2010 will only be a relatively small transaction, with the aim of growing it further in later years.”

A move into Asian markets is in line with Stemcor’s trading volumes; 80% of which are through Asia and emerging markets.

The deal comes after the company’s Q2 2010 oversubscribed US$562mn European revolving credit facility, as Broom notes: “This represents a further development of the group’s treasury strategy and is a logical step for Stemcor.”