The loan agreement has been signed with top Japanese banks including Japan Bank for International Cooperation, Japan’s biggest steel maker said in a statement on Tuesday (17). (Photo of LN Mittal by DAMIEN MEYER/AFP via Getty Images).

THE joint venture of ArcelorMittal and Nippon Steel has inked a £4.20 billion ($5.15bn) loan deal with Japanese lenders.

The loan agreement has been signed with top Japanese banks, including Japan Bank for International Cooperation, Japan’s largest steelmaker said in a statement on Tuesday (17).

Other lenders who are part of the loan deal are MUFG Bank Ltd, Sumitomo Mitsui Banking Corp, Mizuho Bank Europe NV, and London branch of Sumitomo Mitsui Trust Bank Ltd, according to a statement by Nippon Steel.

The Luxembourg-based steel giant said in a statement: “The proceeds of the loan will be used to refinance in full the amounts borrowed by AMNS in connection with the acquisition of ArcelorMittal Nippon Steel India Limited (formerly known as Essar Steel India Limited), including the amounts borrowed under the $7bn bridge term facilities agreement guaranteed by ArcelorMittal.”

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

Last year, India’s Supreme Court cleared the way for London-based business tycoon LN Mittal-led steel giant to acquire bankrupt Essar Steel.

The top court’s order came following a legal battle that had dragged through multiple courts for over 24 months.

ArcelorMittal is the world’s leading steel and mining company, with a presence in 60 countries and primary steelmaking facilities in 18 countries.

In 2019, ArcelorMittal had revenues of $570.6bn and crude steel production of 89.8 million metric tonnes, while iron ore production reached 57.1 million metric tonnes.