HINDALCO TO REPLACE Rs70-CR TERM LOANS WITH FRESH OPTIONS
Article Abstract:
Hindalco Industries of the Aditya Birla group has decided to retire term loans of around Rs70 crore taken from the Industrial Development Bank of India (IDBI) and replace it with fresh loans at lower interest rates of 14.25. The company is availing the benefit of a new policy framed by financial institutions which enables prepayment of old high cost loans. IDBI had sanctioned a loan of Rs230 crore at an interest rate of 16.5 percent to the company in 1993 to install two DG sets to generate 68 mw of power. The interest rate was reduced to 15.75 percent in May 1995 but the disbursements for the project were made at an interest rate of 18.6 percent when interest rates had increased. The company asked for a reduction in the interest rates when the rates had declined but IDBI refused as it had already disbursed loans amounting to Rs100 crore. (khr)
Comment:
Hindalco Industries of the Aditya Birla group has decided to retire term loans of around Rs70 crore taken from the Industrial Development Bank of India (IDBI) and replace it with fresh loans at lower interest rates of 14.25.
Publication Name: Economic Times
Subject: Business, international
ISSN: 0013-0389
Year: 1999
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FIs TO GIVE Rs1,500 CR TO 6 STEEL PROJECTS
Article Abstract:
Financial institutions (FIs) plan to offer loans of Rs1,500 crore to 6 steel projects. They are considering offering more funds for Jindal Vijaynagar Steel, Ispat Industries, Malvika Steels, Usha Ispat and Rajinder Steels. The additional loans will be offered only if the projects meet the conditions laid down by the FIs. The FIs want the promoters of the projects to invest 20 percent in equity for cost overruns. They also want equity conversion clauses, appointment of concurrent auditors and professionalisation of management structures. The FIs will not be allowing the groups to take up new projects until their steel projects are commissioned. They also plan to appoint finance director and raise the institutional nominees on the boards of the companies that have taken the loans. (ag)
Publication Name: Economic Times
Subject: Business, international
ISSN: 0013-0389
Year: 1998
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