Big River 2 Receives $240 million Financing as U.S. Steel Concludes Funding
- 19-May-2023 3:55 PM
- Journalist: Motoki Sasaki
SEATTLE [United States]: Pittsburgh's prominent Steel manufacturer, United States Steel Corporation (U.S. Steel), has revealed that it secured $240 million in financing to support the construction of its new Flat Rolled steelmaking facility, Big River 2, located in Osceola, Arkansas.
Their environmental improvement revenue bonds have been designated as green bonds by the Arkansas Development Finance Authority. These bonds have a coupon rate of 5.70% and will reach final maturity in 2053. As part of the agreement, the steelmaker will make semi-annual interest payments. The funds generated from these bonds will be utilized for funding work on the Big River 2 project.
The highly anticipated BR2 construction is slated to wrap up by 2024. Once fully built, it will take its place as the most cutting-edge steelmaking hub in all North America. Boasting two electric arc furnaces, the facility will be capable of producing around three million tons of Steel annually.
According to David B. Burritt, the President and CEO of U.S. Steel, the financing available for the advanced steelmaking facility has been concluded with a $240 million transaction and $290 million Green Bonds issuance last year through the Arkansas Development Finance Authority. In addition, emphasized that the robust balance sheet and ample liquidity serve as a sturdy base to pursue the best of all strategy.
