Business
Re-structured Debt Facility and Board Appointment
Re-structured Debt Facility and Board Appointment.
About this update from Mercantile Ports & Logistics Limited
[{"type":"text","content":"\n \n \n \n RNS Number : 0152C\n Mercantile Ports & Logistics Ltd\n 16 June 2021\n \n \n \n \n 16 June 2021\n \n \n \n \n \n Mercantile Ports & Logistics Limited \n \n \n (\"MPL\", the \"Group\" or the \"Company\")\n \n \n \n \n \n Re-structured Debt Facility \n \n \n and \n \n \n Board Appointment\n \n \n \n \n \n Mercantile Ports & Logistics Limited, which is operating and developing out its port and logistics facility in Navi Mumbai, Maharashtra, India is pleased to announce that it has successfully negotiated and executed a re-structured debt facility with its consortium of banks that both takes into account the significant progress made with business at its Karanja port and logistics facility while also recognising the acute disruption in India caused by the Covid-19 pandemic. \n \n \n \n \n \n The terms of the re-structured debt facility are favourable to the Company, in summary:\n \n \n \n \n \n · \n Debt Interest Rate lowered from 13.45% to 9.5% per annum.\n \n \n · \n There will be a moratorium on interest rate payments until February 2022 in recognition of the severity of the Covid-19 pandemic which is currently impacting India. \n \n \n ·\n The commencement of the amortisation of the principal loan amount has also been extended by 24 months from October 2020 to October 2022. \n \n \n \n \n \n While the interest moratorium and extended amortisation period are a feature of the Reserve Bank of India's Covid-19 relief policy, MPL is pleased to note that the almost 400 bps reduction in the interest rate is based on the consortium banks own independent viability report on MPL's business on the ground. The terms of the re-structured debt facility underscore that the facility is now revenue generating and has a healthy pipeline of future customers. \n \n \n \n \n \n MPL is also pleased to announce the appointment of Peter Mills as a Non-Executive Director and Chair of the audit committee with immediate effect.\n \n \n \n \n \n Peter is an experienced Chairman and Board member, both non-executive and executive, with a strong corporate governance and regulatory understanding. He has a widespread industry knowledge with approximately 30 years in onshore and offshore financial services markets and broad involvement with gove...