G Steel seeks finance facilities worth Bt11.2bn

 

 

In a filing to the Stock Exchange of Thailand, the listed steel company said that SB Plc, a subsidiary of Standard Bank, is mandated to be the lead manager for the supply facility worth upto US$50 million or approximately Bt1.6 billion. It would also arrange a senior secured term loan of a similar amount. 

Both facilities will be used for purchase of raw materials and working capital to ramp up the capacity utilisation.

Ryuzo  Ogino, a director, also announced that several trade suppliers have agreed in principle to provide facilities in aggregate amount of Bt8 billion, subject to the successful closing of the two deals with Standard Bank. He noted that the facilities will allow the company to operate at full capacity, which is part of its debt restructuring. G Steel is also in the middle of a debt to equity swap, to reduce the debt-to-equity ratio to approximately 1:1. 

"We believe that, upon the successful debt restructuring and closing of the above financial facilities of approximately Bt11.2 billion, the company will be able to operate at high capacity with a healthy balance sheet. This will ultimately benefit all shareholders," he said.