By IANS,
New Delhi : World’s leading steel producer Arcelor-Mittal Tuesday said it has signed a new five-year credit agreement with leading international banks worth $6 billion, which would replace a similar agreement signed earlier.
“The facility would replace the 5 billion euros revolving credit facility under Arcelor-Mittal’s existing 17 billion euros credit facility deal dated November 30, 2006,” said the company in a statement, adding that the credit would be used for general corporate purposes of the group.
According to the statement, the new facility “attracted a very strong level of interest, allowing Arcelor-Mittal to increase the amount of the facility from the launch amount of $5 billion and to scale back the banks’ initial commitment levels”.
The facility was coordinated by Citigroup Global Markets Limited, Credit Agricole Corporate, Investment Bank and HSBC Bank plc.
The revolving credit facilities or open-end credit are commonly used to provide currency liquidity for a company’s day-to-day operations, especially when the company’s operating income is seasonal or varies from month to month.