India’s Essar Steel has pre-paid rupee debt by securitizing exports to the tune of $1 billion.

In a short release, the company said today that the move helps it reduce risk as its revenues are either linked to, or denominated in, dollars.

This transaction, coupled with an earlier debt financing for $1 billion, has saved the company about INR7.2 billion ($116 million) in interest payments while pushing out the average maturity of debt from 3.5 years to 6.75 years.

Headquartered in Mumbai, Essar has an annual production capacity of 10 million tons.

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