JNPT Signs Deal to Raise $400-m $ Loan

The Economic Times - - Economy - Anir­ban.Chowd­hury@ times­group.com

Mum­bai: The country’s largest con­tainer han­dling port JNPT has signed an agree­ment to raise its first dol­lar-de­nom­i­nated loan of $400 mil­lion, or about .₹ 2,660 crore, at close to a 10th of pre­vail­ing do­mes­tic bor­row­ing rates.

“The agree­ment was signed last night. The loan is raised at 2.36% rate com­pared to 12% which is the pre­vail­ing do­mes­tic rate,” ship­ping min­is­ter Nitin Gad­kari told ET at the on­go­ing Mar­itime In­dia Sum­mit here on Fri­day.

“This was my brain­child. ICICI Bank was lend­ing at 12%. I said why? Raise dol­lar loans. Now vi­a­bil­ity of the project won’t be a prob­lem,” the min­is­ter said.

In­dus­try ex­perts said this would lead to other ma­jor ports also tak­ing the ECB route and forex loans as this would be cheaper de­spite the fact that the ru­pee has been fall­ing against US dol­lar.

“This is a proof of con­cept which can be im­ple­mented by the min­istry of ship­ping in six other ma­jor ports with sur­plus dol­lar rev­enues to­wards rais­ing cheaper fi­nanc­ing in dol­lar terms,” said Vinod Ba­hety, se­nior pres­i­dent for cor­po­rate fi­nance at Yes Bank.

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