Mumbai: Leading alloy-maker JSW Steel is entering the dollar bond market with a benchmark issue to raise up to $500 million in debt, sources said Thursday. The issue has received Ba2 rating with a positive outlook by global ratings agency Moody’s Investors Service. The fund raising is in line with a May 2017 board resolution to raise up to $1 billion in one or more tranches by selling bonds in the international markets, the company informed the exchanges. Also Read – Thermal coal import may surpass 200 MT this fiscalMerchant banking sources confirmed that the company is looking to raise up to $500 million through the bond sale. The company, one of the largest steel producers in the country with an installed capacity of 18 million tonne per annum, informed the exchanges that its senior management will be holding roadshows in Hong Kong, Singapore and London next week for the bond issuance. In a note, Moody’s said proceeds from the issue will be utilised for retiring some debt and also for capital expenditure. Also Read – Food grain output seen at 140.57 mt in current fiscal on monsoon boostThe company has $500 million of senior unscured notes maturing in November and an equal amount in unscured bonds maturing in April 2022, the agency said. The rating reflects the company’s large-scale and strong position in its key markets, good product and end market diversification, it added. Meanwhile, its peer Fitch Ratings while assigning a ‘BB’ rating for the issue, said the rating reflects its highly competitive conversion costs and position as one of the largest steel producers in the country. A further increase in planned capex, following a jump in planned capex in 2018, or significant weakening of global steel industry fundamentals could weaken its financial profile, it added. The agency also cautioned about a likely moderation in the strong margins and risks from acquisitions. The JSW Steel scrip closed 2.41 percent up at Rs 294.85 on the BSE, as against gain of 0.46 percent on the benchmark.