Gail For Early Retirement Of Adb Loan

In a major debt-restructuring move, the state-owned gas major, Gail India Ltd, has decided on early repayment of its $235 million outstanding loan from the Asian Development Bank (ADB).

The early repayment of the ADB loan is being worked out based on refinancing through rupee loan or from sale proceeds from the five per cent equity of Oil and Natural Gas Corporation (ONGC) held by it.

The methodology and feasibility for the early repayment is still being worked out by Gail and a note is expected to be put up before the board shortly for consideration.

Gail is of the view that the current rate of interest on the $235 million ADB loan is 6.34 per cent per annum.