Financial Daily from THE HINDU group of publications
Friday, Dec 20, 2002
Financial Daily from THE HINDU group of publications Friday, Dec 20, 2002 |
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Corporate
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Announcements Logistics - Shipping Essar Shipping prepays Rs 136 cr to ICICI Bank Our Bureau
MUMBAI, Dec. 18 ESSAR Shipping Ltd today said it has prepaid Rs 136-crore loan to ICICI Bank, three years ahead of maturity. With this, the company would save Rs 10.56 crore per annum as the loan advanced in January 1999, carried an interest of 12.88 per cent, Essar said in a news release. This is the second pre-payment of debt by Essar Shipping in the recent past, earlier the company prepaid Rs 18.74 crore. "This is part of our effort to clean-up the balance sheet. With this, the company's debt equity ratio stands at 0.63:1,'' said an Essar official. The entire payment has been made from internal accruals and not from any fresh loan, the official said. The company now has outstanding long-term loans of Rs 550 crore and short-term borrowing of Rs 30 crore. The pre-payment of the loan assumes significance as Essar Shipping is in race for the 51 per cent Government stake in Shipping Corporation of India. Essar may be preparing for a clean balance sheet to raise funds for buying SCI, said an analyst.
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