To assist in lowering debt costs, Kotak Bank's Arms invests Rs 732 crore in Rattanindia Power

26 Jun 2023 , 12:24 PM

On Friday, Kotak Mahindra Bank announced that two of its arms had invested Rs 732 crore in Rattanindia Power to assist the operator of the thermal power plant in lowering debt payment costs.

According to a release, the non-convertible debentures of RattanIndia Power would receive investments from the Kotak Strategic Situations India Fund II and Kotak Private Credit Fund of Rs 582 crore and Rs 150 crore, respectively.

According to the statement, the investment is a portion of a total infusion of Rs 1,125 crore by a group of lenders, and it would be used for debt restructuring.

According to a media source from May, the company is in negotiations with Kotak Mahindra Bank for the financing facility, which may reduce the cost of debt servicing by 7-8%.

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