Essar Steel Ltd. (ESL) has reportedly devised a plan once again to refinance its debt by hitting the international bond markets in the upcoming quarter.

In 2010, the Mauritius based Essar Steel Holdings raised a proposal to fund about $1 billion through bonds in order to utilize the finances for reducing company’s debt and future projects. But the plans had to be turned down after debt crisis hit the European economy.

The CEO of Essar Steel, Malay Mukherjee confirms the news adding that the company is looking for favorable market conditions as the international market may be in a better position for raising funds by the next quarter. However, the amount of company’s current outstanding debts or the finances to be raised was not mentioned by the official.

Essar Steel in last July had merged four of its Indian entities into one, consolidating its scattered debt into a single company. Sources close to ESL stated that post consolidation ESL would have an estimated consolidated debt of Rs. 17,300 crore and equity of about Rs. 14,000 crore for its Indian operations. The consolidation includes combined debts of four of ESL’s Indian entities – Essar Steel Hazira Ltd., Essar Steel Orissa Ltd., Hazira Plate Ltd. and Hazira Pipe Mill Ltd. which have been merged under the accounts of Essar Steel since July last year.

According to Mukherjee, the company can easily afford international loans as the interest rates in foreign bond markets is 5-6 percent at present and since ESL has a large demand for exports, there is comparatively less risk from foreign currency fluctuations.