Inox Wind Limited (IWL) on Monday announced that it has signed a consortium agreement with a group of banks led by ICICI Bank for limits of approximately Rs 2,200 crore. This limit, it added, is likely to be enhanced further to around Rs 2,400 crore as per the working capital assessment done by the lead bank (ICICI Bank).
In a regulatory filing, the company said that the limited extended are largely non-fund based [bank guarantees (BGs) and letter of credits (LCs)]. The limits have been sanctioned basis the financial strength of Inox Wind’s balance sheet and without the requirement of any corporate guarantees or any other support from Gujarat Fluorochemicals Ltd. (GFL). Due to the recent fund raises as well as its operational ramp up, IWL’s balance sheet has become net cash positive.
With this arrangement in place, any prior corporate guarantee or any other such support extended to IWL by GFL stands vacated / to be vacated in the near future.
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Akhil Jindal, Group CFO, INOXGFL Group, said, “The consortium arrangement reposes the confidence of the banking community in IWL’s financial strength. This is the culmination of the last several quarters of efforts and is backed by the strong operational performance by the company and its robust outlook. We thank all our banking partners who have been supportive throughout our journey largely on account of IWL honouring all its commitments without causing any loss to the banks and financial institutions.”
Earlier in July, Inox Wind Limited had announced the completion of infusion of approximately Rs 900 crore into the company by its promoter Inox Wind Energy Limited (IWEL). The funds, it added, were raised by IWEL on May 28 through sale of equity shares of Inox Wind through block deals on the stock exchanges, witnessing participation of several marquee investors. Per the information shared by the company, the funds were to be utilised by the company to completely pare down its external term debt to achieve a net debt free status.
From: financialexpress
Financial News
