LONDON (Alliance News) - Infrastructure India PLC Thursday said it had doubled its USD8.1 million unsecured loan facility with Cedar Valley Financial Ltd to USD16.2 million, and will use most of the money to cover the immediate financial and working capital needs of its Vikram Logistic and Maritime Services Private Ltd subsidiary.
The investor in Indian infrastructure assets got its original USD8.1 million Cedar Valley loan facility last month. Cedar Valley is an affiliate of GGIC Ltd, which holds 51.17% of Infrastructure India's shares.
The enlarged loan has a final maturity date of November 3, 2014, and attracts an interest rate of 15% a year payable on the maturity date, the same rate as on the original loan facility. Infrastructure India is paying a USD81,000 fee for arranging the new loan.
The company said it is actively exploring various avenues of funding for both itself and its Vikram Logistic subsidiary.
It has to repay the new Cedar Valley facility from the proceeds of any capital raising it does, and said it intends to repay it from the proceeds of any permanent financing it may be able to obtain for Vikram Logistic.
Infrastructure India shares were down 3.5% at 14.00 pence Thursday morning.
By Steve McGrath; stevemcgrath@alliancenews.com; @stevemcgrath1
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Infra.india (IIP)