Mumbai: Ruias-promoted Essar Ports Thursday said it has refinanced a debt of Rs 405 crore through the take-out finance window offered by IIFCL, which will bring down the interest burden by 2.5 percent.
"Essar Ports has availed of the take-out finance scheme to reduce interest rates by over 2.5 percent on the Rs 405 crore debt," a company statement said.
The loan taken by Essar Bulk Terminal, a subsidiary, is part of the debt for its 30-mt capacity bulk terminal at Hazira in Gujarat.
Essar Ports has a debt of about USD 1 billion, it said, adding it will explore the possibility of using the refinance facility for its other projects, especially the Vadinar Port.
Take-out finance is a government-backed scheme handled by India Infrastructure Finance Company (IIFCL) under which the commissioning of infrastructure project qualifies a company for refinance. The project can replace some of its costly domestic rupee debt with IIFCL funds.
"This will reduce our cost of debt and we will undertake more such initiatives," Essar Ports finance director Shailesh Sawa said.
First Published: Thursday, September 20, 2012, 21:56