Tata Steel is in talks to raise as much as $400 million in what could be the steelmaker’s first green loan, Bloomberg News reported on Tuesday.
Tata Steel has been making efforts to be carbon neutral and plans to start producing “green” steel – or steel made without using fossil fuels – in 2030 at its plant in Ijmuiden, Netherlands.
The debt could have a tenor of about five years and the funds raised would be used for capital expenditure, the report said, citing sources.
The details are not final and might change, the report added, saying lenders for the loan include Bank of America Corp, HSBC Holdings, JP Morgan Chase & Co and Mitsubishi UFJ Financial Group.
“While the company is continuously evaluating the developments and options in the green financing space, there is nothing concrete,” a Tata Steel spokesperson told Reuters.
“We continue to focus on our deleveraging plan and further repayments beyond the $4.5 billion deleveraging achieved in the last 3 years,” the spokesperson said, without giving any other details.