31st Mar 2014 09:50
LONDON (Alliance News) - Jubilant Energy NV Monday said it has entered a funding agreement with Axis Bank Ltd, Singapore Branch for USD15.0 million in the form of a foreign currency loan.
Jubilant said the tenor of the loan is six years, with a capital moratorium period of four and a half years and with repayment commencing thereafter in four semi-annual instalments.
The loan will accrue interest at a rate of 6-month USD LIBOR plus 570 basis points per annum, a processing fee of 9% and other nominal charges.
The funds will be applied for general corporate purposes including debt repayments and servicing, Jubilant said.
Jubilant said the loan is secured by a corporate guarantee Jubilant Enpro Private Ltd, the ultimate holding company of the company and which is jointly owned and controlled by Shyam Sunder Bhartia and Hari Shanker Bhartia.
Jubilant said it has agreed to pay a commission of 1% a year of the guaranteed amount to Jubilant Enpro for its corporate guarantee.
Jubilant Energy shares were Monday quoted at 8.92 pence, up 5.0%.
By Samuel Agini; [email protected]; @samuelagini
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