(Alliance News) - Mercantile Ports & Logistics Ltd on Tuesday announced it has re-structured a debt facility with its banks as well as appointed a new board member.
Mercantile Ports shares surged 30% to 0.70 pence each in London on Wednesday morning.
The port and logistics firm based in India said it has successfully negotiated and executed a re-structured debt facility with its consortium of banks.
The new facility both takes into account the progress made with business at its Karanja port and logistics facility, which is in Navi Mumbai, while also recognising "the acute disruption in India caused by the Covid-19 pandemic", the company said.
India has recently garnered international attention due to a spike in Covid-19 cases. India's capital New Delhi and financial hub Mumbai began a gradual easing of restrictions last Monday, however.
Strict lockdown measures had been in place since April at the start of a devastating surge in infections that lasted well into May and overwhelmed healthcare facilities in many parts of the country.
The debt interest rate of the facility has been lowered to 9.5% from 13.45% and there will be a moratorium on interest rate payments until February 2022, in recognition of the severity of the Covid-19 pandemic in India, the company said.
Chair Jeremy Allen said: "The restructured debt facility is testament to the growing strength of MPL's business. The opportunities now available to MPL are significant and it is very pleasing to note that our consortium of banks endorse our business.
"Our Karanja based port and logistics facility has moved from being a development project to becoming a revenue generating asset. While the Covid-19 pandemic has, as for many companies in India and around the world, had an impact on our business, I am pleased about the progress that has been made by our business development team."
The company announced the appointment of Peter Mills as a non-executive director, effective immediately. Mills has 30 years' experience in onshore and offshore financial services markets.
"Having qualified as a Chartered Accountant in 1996, his directorships have included banking groups, fund management companies, fiduciary services companies, listed and unlisted investment funds, captive insurance company and leasing companies," Mercantile said.
By Greg Roxburgh; gregroxburgh@alliancenews.com
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Mercantile Ports & Logistics (MPL)