8th Apr 2014 08:50
LONDON (Alliance News) - SKIL Ports & Logistics Ltd Tuesday said it has closed a syndicated debt facility for the purpose of building out its ports and logistics facility in Karanja, NaviMumbai, India.
SKIL Ports & Logistics said the build out of its facility in Karanja is now fully funded, based on management projections.
In a statement, SKIL Ports & Logistics said the INR4.80 billion facility has been provided by four Indian public sector banks for a ten-year term, with interest payable at the banks' base rates, plus a range of 3.0% to 3.55% a year.
That results in a present effective rate ranging between 13.2% and 13.75% a year.
SKIL Ports & Logistics said it expects to make its first draw-down from the facility during the second-quarter of the current calendar year.
Chairman Nikhil Gandhi noted his pleasure at closing the debt facility.
"The backdrop of raising debt in India has been extremely challenging and raising a facility of this amount is testament to the strength of the project we are delivering," Gandhi said in a statement.
The site development works at Karanja are progressing as per management's expectations and the project's EPC contractor is pleased with progress, SKIL Ports & Logistics said.
"The coming months will see significant progress on the development of the approach trestles, revetment, reclamation and the piling work for the jetty," SKIL Ports & Logistics said.
"Manpower on site continues to ramp up, with a labour force of approximately 400-500 people expected to be working onsite in the coming months.
"The company's management continues active dialogue with potential end users of the facility and is pleased with reception that the project is generating amongst this group," SKIL Ports & Logistics added.
The company said it expects to report results for 2013 on May 29.
SKIL Ports & Logistics shares were Tuesday quoted at 80.0 pence, up 8.8%.
By Samuel Agini; [email protected]; @samuelagini
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