Renuka Sugars' shareholders approve raising up to $300 mn from holding firm

Renuka Sugars on Tuesday said its shareholders have approved raising up to $300 million (around Rs 2,263 crore) through external commercial borrowing from holding company Wilmar Sugar Holdings Pte Ltd.

The ordinary resolution to this effect was approved by the shareholders at an extra ordinary general meeting, according to a regulatory filing.

Earlier, the company had said it was in advanced discussions with existing lenders to refinance debt to reduce borrowing cost and for timely funding of growth operations of the company.

"The company has requested for the support of its holding company Wilmar Sugar Holdings Pte Ltd (WSH) for this purpose.

"WSH has agreed to extend a loan facility of up to $ 300 million to the company through the external commercial borrowing (ECB) route in compliance with RBI regulations for the purpose of repayment of the term loan facility, the working capital facility and NCDs," the company had said in a notice to the shareholders.

The proceeds of the ECB will also be utilised for meeting the company's working capital requirements and general corporate purposes.