Ecb Without Govt Cover For Balco
Public sector aluminium major Bharat Aluminium Company has managed to clinch an external commercial borrowing deal from a consortium of mainly European banks without either a sovereign or banker's guarentee.
The ECB deal, in the form of a buyer's credit amounting to $15 million, is being extended to Balco for the purchase of a continuous strip caster and a 40,000 tpa cold rolling mill from FATA Hunter, a division of the FATA Group SpA of Italy.
The banker's consortium is led by Efibanca _ Ente Finanziario Interbancario SpA _ of Rome. It is the first time Efibanca is extending a commercial loan to any private or public sector corporation anywhere in the world without any such guarentee.SBI European Bank Plc, London and Banca Nazionale Del Lavoro SpA, Singapore branch are the other members of the consortium.
According to a company release, Balco has also managed to clinch the deal at just 6.52 per cent per annum (52 basis points above Libor). The loan is to be repaid over 117 months in half-yearly instalments, commencing six months after provisional acceptance of the loan agreement. The repayment of the loan is guaranteed by SACE - the Italian State Export Credit Guarentee Corporation and Mediocredito.