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Stemcor, the world's largest independent steel trader, said Friday it has agreed $1 billion of multicurrency revolving credit facilities.

Stemcor signed a $772.5 million, 364-day revolving credit facility with the option to extend it twice for a similar period of time, and signed a three-year, $227.5 million revolving credit facility.

The 364-day facility will be used to refinance and cancel Stemcor's existing three-year facility, a two-year Forward Start Facility and for general commercial purposes in the ordinary course of business, it said.

The syndicate comprised 53 lending banks and, due to significant over-subscription, Stemcor decided to increase the size of the facilities to $1 billion from an initial $650 million.

Michael Broom, group director of treasury & risk, said "Stemcor had a very strong year in 2010 and progress to date in 2011 is encouraging, despite the depressed construction sector dampening demand for steel in many regions."

The deal was launched at the end of March with ABN AMRO Bank NV, BNP Paribas SA (BNP.FR), ING Bank NV (ING), Royal Bank of Scotland PLC (RBS.LN), Societe Generale Corporate & Investment Banking (GLE.FR) and Standard Chartered Bank (STAN.LN) appointed as active bookrunners and mandated lead arrangers.

-By Alex MacDonald, Dow Jones Newswires; +44 (0)20 7842 9328; alex.macdonald@dowjones.com