Tata Steel UK Holdings, a 100% indirect subsidiary of Tata Steel today executed agreements for the refinancing of its bank debt through term loan and revolving credit facilities of euro 3.05 billion.

The debt was originally incurred in relation with the acquisition of Corus Group plc in 2007. The new financing structure consists of a 5-year loan of euro 370 million, a 6 year revolving credit facility for working capital purposes of pound 700 million and a 7-year loan of euro 1.8 billion, with more favourable terms and pricing relative to the earlier debt.

Further, Tata Steel Global Holdings (TSGH), another 100% indirect subsidiary of Tata Steel incorporated in Singapore has also executed agreements today for loan facilities of USD 1.5 billion comprising of a 5 year loan of USD 700 million and a 7 year loan of USD 800 million. The proceeds of this loan will be used to repay term debts, term out working capital and fund investment needs of the Tata Steel Group outside India.

Koushik Chatterjee, Tata Steel group executive director (Finance and Corporate), said, ''The new loan facilities are being put in place well ahead of any material maturities of the existing debt structure of the Tata Steel Group. The financing structure has been designed with flexible terms and better pricing that will provide financial headroom to the international business especially in Tata Steel Europe in the coming years. Along with the recent bond issuance of USD 1.5 billion completed in July this year, this marks the completion of the restructuring and refinancing of the entire international debt portfolio and de-risking of the capital structure of the Tata Steel Group. The overall capital structure and the consolidated leverage level will remain unaffected by this financing while the cost of the same will be lower. This financing also demonstrated the company's long standing relationship with the banking syndicate and I would like to thank these institutions for their continuing support to the Tata Steel Group.''

Shares of the company declined Rs 16.3, or 3.57%, to settle at Rs 439.85. The total volume of shares traded was 1,151,952 at the BSE (Thursday).