BMM Ispat Ltd.

BMM Ispat Ltd.

BMM Ispat Ltd.

December 2020

Announced Date: December 2020

Value: USD 175.0 million

BMM Ispat Limited ("BMM"/ "Company") has successfully raised approximately USD 175 Million of funds for overall capital structure realignment of the Company.

Founded in 2002, BMM is located at Danapur village, Hospet taluk, about 335 KM north-west of Bangalore, in Karnataka. It is primarily engaged in iron ore beneficiation & pelletisation, production of sponge iron, steel ingots/ billets, long steel products (TMT bars) and generation of power (235 MW capacity).
The transaction was structured as a bilateral funding transaction with JSW Projects Limited (JSWPL), part of the JSW Group, providing debt and subscribing to Equity/ Equity linked instruments for a majority stake in the company and CPPIB Credit Investments Inc subscribing to Non-Convertible Debentures (NCD's) issued by the Company. The Company has fully settled its existing loans using the funds raised from the transaction.

Commenting on the transaction, Dinesh Singhi, Chairman/ Promoter of BMM Ispat said, "The fund raising has come at an opportune time and had helped the company in repayment of its existing debt and bringing down the overall leverage to sustainable levels and would also help the company complete its pending CAPEX going forward and achieve its future growth plans".

Commenting on the investment, Raymond Chan, Managing Director and Head of APAC Credit, CPP Investments said, "The transaction marks a significant milestone for CPP Investments' credit investment program in India. Emerging markets are a significant part of our long-term strategy and India is a key component of that. We see great opportunities in providing long-term, stable capital to finance India's growth cycle."