Essar Ports has re-financed its debt in a subsidiary, Essar Bulk Terminal, through a finance scheme of the India Infrastructure Finance Company (IIFCL).
The company has raised through take out finance scheme to reduce its interest rate by over 2.5 per cent on Rs 405 crore, which is part of the debt taken for building its 30 million tonne capacity bulk terminal at Hazira in Gujarat. The scheme of infrastructure projects by IIFCL is a Government initiative, wherein an infrastructure project on commissioning can replace some of its costly domestic rupee debt with finances from IIFCL. While this lowers the interest burden on infrastructure projects, it also facilitates incremental lending to the infrastructure sector by freeing up the capital of banks.
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