South India's largest cement manufacturer India Cements has availed itself of over Rs 500 crore from ICICI Bank and Axis Bank, apart from raising around $60 million from ICICI Bank. The funds will be used for the repayment of existing high cost debt, according to the company.
According to the company's Annual Report 2011-12, the company has availed itself of financial assistance in the form of External Commercial Borrowing (ECB) of $ 60 Million from ICICI Bank Limited for the purpose of setting up thermal power plant with a capacity of 50 MW and upgradation of Chilamakur cement plant.
Earlier the company said it is planning to set up two captive power plants of 50 mega watt (MW) each, one in Tamil Nadu and one in Andhra Pradesh, will be commissioned in October and the last quarter of fiscal 2013 respectively. These projects alone would attract investments to the tune of Rs 250-300 crore.
“One of the terms and conditions set out by ICICI Bank Limited, is that the aforesaid financial assistance is required to be secured by a first mortgage and charge on all the immovable and movable fixed assets of the company in favour of 3i Infotech Trusteeship Services Limited, the security Trustee for ICICI Bank Limited."
The company has issued and allotted 4,000 Secured Redeemable Non-Convertible Debentures of the face value of Rs 5 lakh each, aggregating to Rs 200 crore to ICICI Bank Limited for the purpose of redemption of non-convertible debentures and repayment of existing bank debts including redemption of Foreign Currency Convertible Bonds (FCCBs) with redemption premium, said in the Annual Report.
It was further said, one of the terms and conditions set out by ICICI Bank Limited is that the aforesaid debentures are required to be secured by a first mortgage and charge on all the immovable and movable fixed assets of the Company in favour of IDBI Trusteeship Services Limited, the Debenture Trustee for ICICI Bank Limited.
The company also said it has availed itself of term loan of Rs 300 crore from Axis Bank Limited for the purpose of prepayment of existing high cost debt and retirement of FCCBs. One of the terms and conditions set out by Axis Bank Limited is that the aforesaid assistance is required.
