The International Finance Corporation, the private sector arm of the World Bank Group, has signed a US$300mn loan agreement with India’s Tata Iron & Steel Company. IFC’s financing will help support Tata Steel’s modernisation and expansion programme, including a capacity increase in its plant in Jamshedpur in Jharkhand state, India.


Earlier this year, Tata Steel announced the acquisition of NatSteel Asia, a Singapore-based company with operations in Australia, China, Malaysia, the Philippines, Thailand, and Vietnam. The overall investment programme constitutes a significant step toward Tata Steel’s becoming a global producer with production of 15mn tons a year.


Established in 1907, Tata Steel is India’s largest integrated private sector steel manufacturer with a workforce of over 40,000. It manufactures a wide range of flat and long steel products at its facilities in Jamshedpur.


IFC will provide the company with a corporate loan ofUS$300mn, which includes a syndicated loan of US$200mn. The syndicated loan is expected to be underwritten by Bank of America, Calyon, HSBC and Standard Chartered.