JSW Steel and Duferco International Trading Holding SA (DITH) have aligned their strategic goals in a landmark $700 million 5-year Advance Payment and Supply Agreement (APSA) executed on the February 27, 2019.
This unique financing structure provides JSW long term funding to complement its plans for future growth secured by committed exports of steel products to DITH. For DITH the transaction assures a captive supply of various steel products from JSW over the term of the APSA.
The transaction further cements the long-term relationship between the two groups which have partnered together in various commercial ventures during the past 15 years. The deal is the largest trade finance facility to have been arranged in the Indian steel sector. In the past, JSW and DITH have entered into similar trade financing arrangements on smaller scale but for a longer term, all of which were successfully executed and completed.
JSW Steel is one of the largest steel manufacturing companies in India having units in Karnataka and Maharashtra producing crude steel, long steel and flat steel products.