The board of directors of Shaw Wallace & Company (SWC) has cleared an external commercial borrowing (ECB) of $10 million at an interest of 3 per cent higher than Libor.
According to a company release, SWC had received a firm offer for the foreign currency term loan. The proposal put up before the board of directors of the company, including two Company Law Board (CLB) nominee directors, C K Hazari and L C Gupta, was passed unanimously.
Shaw Wallace is in the process of filing applications with concerned authorities for the necessary approvals.
While the eligibility for $7 million is based on SWC's export performance over the last three years, the remaining $3 million is being brought in with RBI's permission. The company expects the funds to come in before December-end.
SWC had approached CLB seeking approval of the ECB issue in August last year. The CLB had termed the application as premature, and directed the company to first approach concerned authorities for the necessary approvals on the basis of a firm loan offer.
