Essar Oil exits CDR loan facility, stock surges 5%
The CDR loan facility has been replaced with a new debt facility of about Rs 9,100 crore on commercial terms from similar group of lenders.
Essar Oil has surged over 5% to Rs 82.85 in early morning deals after the company said that it has completed the process for exiting the corporate debt restructuring (CDR) loan facility set up in December 2004 to help cover the construction costs of its Vadinar refinery in Gujarat.
“The CDR loan facility has been replaced with a new debt facility of about Rs 9,100 crore on commercial terms from similar group of lenders,” Essar Oil, the country’s second-largest private sector refiner, said in a statement.
“The CDR exit will lead to greater operational and financial flexibility for the organisation. We have begun the process of swapping our costly rupee debt with cheaper dollar loans that will lower our interest cost significantly, improve our cash flow, and strengthen the balance sheet,” said Suresh Jain, Chief Financial Officer, Essar Oil.
The stock opened at Rs 79.50 and touched high of Rs 83.90 on NSE. A combined 542,115 shares have already changed hands on the counter till 0930 hours on NSE and BSE.
“The CDR loan facility has been replaced with a new debt facility of about Rs 9,100 crore on commercial terms from similar group of lenders,” Essar Oil, the country’s second-largest private sector refiner, said in a statement.
“The CDR exit will lead to greater operational and financial flexibility for the organisation. We have begun the process of swapping our costly rupee debt with cheaper dollar loans that will lower our interest cost significantly, improve our cash flow, and strengthen the balance sheet,” said Suresh Jain, Chief Financial Officer, Essar Oil.
The stock opened at Rs 79.50 and touched high of Rs 83.90 on NSE. A combined 542,115 shares have already changed hands on the counter till 0930 hours on NSE and BSE.