21 Jan 2014 09:59
21 January 2014
Great Eastern Energy Corporation Limited
("Great Eastern" or "the Company")
Issuance of Non-Convertible Debentures for INR 1,500 Million
Great Eastern Energy Corporation Limited (LSE: GEEC), the fully integrated, leading Indian Coal Bed Methane (CBM) Company, is pleased to announce that it has signed a Debenture Trust Agreement with IL & FS Trust Company Limited (Debenture Trustee) for the issue of Non-convertible Debentures ("NCD") of INR 1,500 Million (~US$ 24 million) to Indostar Capital Finance Private Limited at a fixed interest rate of 14% per annum with a door-to-door tenure of 6.25 years.
The purpose of this NCD issuance is only to repay the existing Rupee term loan facility taken by the Company in 2008 from a consortium of Indian banks which was at an interest rate of ~15%. Hence, the total debt of the Company shall remain the same after this NCD issuance.
Apart from improving the cash flow, the Company will save approximately 1% in interest cost.
IPO Disclaimer: http://www.geecl.com/disclaimerClause.html
For further information please contact:
Great Eastern Energy
Yogendra Kr. Modi Chairman & CEO +44 (0)20 7614 5917
Prashant Modi President & COO
Goldman Sachs International
Alastair Maxwell +44 (0)20 7774 1000
Duncan Stewart
Arden Partners
Richard Day +44 (0)20 7614 5917
Katelin Kennish
Macquarie Capital (Europe) Limited
Steve Baldwin +44 (0)20 3037 2362
Shore Capital
Pascal Keane +44 (0)20 7408 4090
Jerry Keen