JSW Infra Arm Bags ₹500 Crore Loan for Tuticorin Port Expansion

20 Dec 2024 , 11:02 AM

JSW Infrastructure Ltd, which is part of the JSW Group, has informed the BSE that its arm, JSW Tuticorin Multipurpose Terminal Private Ltd, has raised a term loan of ₹500 crore.

Both ICICI Bank and Canara Bank have given it equal share. The said amount would be used for development and mechanisation of North Cargo Berth-III (NCB-III) at V.O. Chidambaranar Port, Tuticorin. The dry bulk cargo terminal will have a capacity of 6.96 million tonnes per annum and be developed on DBFOT.

JSW Infrastructure said it has furnished debt repayment shortfall undertaking to pay back the principal and interest on the loan during its tenure. The company, as part of this undertaking, would ensure that it has at least 51% ownership in JSW Tuticorin Multipurpose Terminal Private Ltd.

JSW Infrastructure shall absorb any shortfall in fund requirement or cost overrun by injecting equity or promoter loans fully unsecured. The replacement of debt service reserves will suffice the loan repayment obligation.

It has agreed not to withdraw the unsecured funds infused towards addressing financing shortfall in case of default. This ₹500-crore term loan and the associated debt repayment undertaking would be disclosed as contingent liability in the financials of JSW Infrastructure.