RGTIL gets nod for refinancing existing project loans

Mukesh Ambani-led Reliance Gas Transportation Infrastructure Ltd (RGTIL) has received sanction for refinancing its existing project term loans.
The loans, the company informed the National Stock Exchange (NSE), are now repayable over a period of 16 years, with a put and call option at the end of seven years.
This refinancing and not restructuring has been done under the provisions of the RBI circular of August 7, 2014.
"... We wish to clarify that under the RBI Scheme of refinancing of existing long term project loans vide their circular noDBOD.BP.BC.No 31/21.04.132/2014-15 dated 7th August 2014, the Company has received sanctions for the refinance of the existing project term loans and the same are now repayable over a period of 16 years with a put and call option at the end of 7 years," RGTIL told NSE.

According to the RBI circular, "... In respect of existing project loans, it has been decided that banks may refinance such loans by way of full or partial take-out financing, even without a pre-determined agreement with other banks / FIs, and fix a longer repayment period, and the same would not be considered as restructuring in the books of the existing as well as taking over lenders, if the following conditions are satisfied."
"The promoters of the company have agreed to provide the necessary financial support to the company as and when required," the Notes that accompanied the company's annual results, released on May 28, 2015, stated.

"The company has since obtained sanctions from banks for 'rescheduling' the principal repayment of the rupee term loans till 2030-31 as against the current repayment schedule over next 4 years," the Notes had stated, instead of using the word, "refinancing".
According to the Notes, the long-term prospects of the company appear better due to increased level of exploration activities, new gas discoveries in the KG basin and the expected commissioning of LNG terminals on the east coast.
"Typically, infrastructure projects of this nature are expected to yield returns only over a longer period," RGTIL stated.