Essar Ports has refinanced its debt in its subsidiary Essar Bulk Terminal Ltd through take-out finance scheme of India Infrastructure Finance Company Ltd. (IIFCL). Essar Ports has availed itself of the take-out finance scheme to reduce its interest rate by over two-and-half per cent on Rs.405 crore which is part of debt taken for building its 30-million tonne capacity bulk terminal at Hazira in Gujarat, the company said. The company, which has a total debt of about a billion dollars, is exploring such schemes for cutting the cost of its infrastructure project, Vadinar Port Terminal, a 12 million tonne all weather deep draft facility located in Gujarat, it said.
“ This will (take-out fiancé) reduce our cost of debt, and we will undertake more such initiatives to deliver better returns to our shareholders,” said Shailesh Sawa, Director Finance, Essar Ports Limited.
Earlier this year, Essar Ports had entered into strategic alliance with Port of Antwerp receiving an equity infusion of Rs.175 crore, and the proceeds were used to reduce the company’s debt.
Keywords: Essar Ports