MUMBAI, 4 June 2020: In order to meet working capital of the company, Shree Renuka Sugars Limited has decided to raise USD $300 million (INR 2300 crore) through external commercial borrowings (ECBs) from Wilmar Sugar Holdings Pte Ltd.
The Board of Directors of the Company at its meeting held on 3 June 2020 has considered and approved the proposal for raising of funds by the Company through External Commercial Borrowings (ECB) from its holding company Wilmar Sugar Holdings Pte. Ltd to refinance the Company’s existing debts, the company said in a regulatory filing at the Bombay Stock Exchange (BSE).
The company also said that the board also passed resolutions for increasing the borrowing limits from the existing INR 6,000 crore to INR 10,000 crore, subject to approval of the shareholders of the Company.
The raising of ECB is subject to entering into definitive agreements for the transaction and such regulatory/ statutory and other approvals as may be required, including receipt of sanction letters from lenders and approval of shareholders of the Company at the ensuing general meeting, the filing added.
On repayment, the company filing said that loan will be repay in 60 months from the first drawdown date and will attract an 6 months LIBOR + 3% per annum interest in accordance with the guidelines of the Reserve Bank of India (RBI).
WSH is the holding company of Shree Renuka Sugars Limited and currently holds 58.34 percent of paid‐up share capital.
The company currently operates seven sugar mills in India with a total crushing capacity of 7.1 MTPA or 35,000 TCD and two port based sugar refineries with capacity of 1.7 MTPA.
It also manufactures fuel grade ethanol that can be blended with petrol. Its distillery capacity is 930 KLPD (630 KLPD from molasses to ethanol and 300 KLPD from rectified spirit to ethanol).