Indian steel giant Tata Steel is reported to be in talks with banks for $5.4 billion credit for its European subsidiary, the UK-based Corus.
The Economic Times newspaper reported on September 4 that BNP Paribas, Credit Agricole CIB, HSBC Holdings and Royal Bank of Scotland may lend £2.5 billion ($3.85 billion) over five years, while State Bank of India may arrange a £1 billion ($1.55 billion) loan over seven years.
Tata Steel chief financial officer Koushik Chatterjee reportedly stated that the Mumbai-based steelmaker plans to refinance as much as $6.5 billion of its long-term debt.
Tata Steel took loans to fund its $13 billion acquisition of Anglo-Dutch steelmaker Corus in 2007, before the global financial crisis hit demand for steel.
Tata Steel has not made an official statement on the issue.