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LONDON (Alliance News) - Infrastructure India PLC Wednesday said it has agreed a new financing deal with Cedar Valley Financial Ltd, making up to USD8.1 million available in the form of an unsecured loan facility, with the funds to be used to invest in subsidiary Vikram Logistic and Maritime Services Private Ltd.
Cedar Valley is an affiliate of GGIC Ltd, which holds 51.17% of Infrastructure India's shares.
In a statement, Infrastructure India, which is a fund that invests directly into assets in India, said the fund will be used to meet Vikram Logistic and Maritime Services Private's working capital needs. The funds will also go towards the capital expenditure of the subsidiary's Nagpur terminal.
Infrastructure India said its is "actively exploring" various avenues of funding for both the group and for Vikram.
Infrastructure India said it is required to repay the loan from the proceeds of any capital raising it or its subsidiaries make. It intends to repay the facility from the proceeds of any permanent financing it may be able to obtain for Vikram.
Under the agreement, Infrastructure India is able to request one or more loans in a number of advances no less than USD1.0 million each.
The loans are available until May 10 and repayable on November 3.
The interest rate on the loans has been set at 15% per year. A USD81,000 arrangement fee also must be paid.
Infrastructure India said its independent directors have decided the facility's terms are "fair and reasonable" to shareholders after consulting with nominated adviser Smith & Williamson Corporate Finance Ltd.
Infrastructure India shares were Wednesday quoted at 10.77 pence, up 5.1%.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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