Covid-19: IFC to infuse $35 mn in JK Paper to fund its working capital need

The proposed IFC infusion would fund the incremental working capital requirements due to the impact of Covid-19

The International Finance Corporation (IFC), the investment arm of the World Bank, is planning to support JK Paper Limited's (JKPL's) working capital requirements by infusing nearly $35 million in the company. The infusion will help the company address liquidity constraints in the midst of the coronavirus (Covid-19) crisis.

The incremental working capital requirements and shortfall in cash flow generation to fund planned and future capital expenditures are expected to aggregate to approximately $35 million, which would be financed by the IFC investment. 

The IFC investment is in the form of secured non-convertible debentures (NCDs) of up to Rs 2.6 billion ($35