Milbank LLP advised Credit Suisse, Deutsche Bank, Standard Chartered Bank, Axis Bank, BNP PARIBAS, Mizuho Securities, MUFG, and State Bank of India, London Branch as underwriters in connection with an overseas bond issuance by JSW Steel Limited (“JSW Steel”), a leading Indian steel maker. The transaction includes two tranches that have a combined value of US$1 billion.
The sale is JSW Steel’s first Rule 144 / Regulation S issuance, and includes US$500 million 3.95% notes due 2027 and US$500 million 5.05% notes due 2032. The latter is a US-dollar denominated sustainability-linked bond and marks the first such issuance in the global steel sector. Under the sale’s terms, JSW Steel will reduce its carbon monoxide emission levels by 23%, compared to its 2020 levels, by March 2030.
JSW Steel, subsidiary of JSW Group, is an Indian multinational steel making company based in Mumbai. It is one of the fastest growing companies in India with a global footprint in over 140 countries. JSW Steel is an adopter of technology that aims at green steel production to help it meet its goal of becoming carbon neutral by 2030.
The Hong Kong-based Milbank team was led by Global Capital Markets Group partner James Grandolfo with associate York Wu.
Mr. Grandolfo said: “This is a landmark issuance for both JSW Steel and the global steel industry and we are thrilled to have helped bring it to fruition. The transaction is a demonstration of the growing appetite for, and success of, ESG financing opportunities as investors and issuers alike are increasingly utilizing ESG to guide their investment decisions.”
