CDR Empowered Group approves conversion of the 3i Infotech's CDR Rupee Debt to Foreign Currency Debt at 3 month Libor + 650 bps p.a.

3i Infotech Ltd has announced that the CDR Empowered Group, in its meeting held on November 14, 2013, has in-principle approved the conversion of the CDR Rupee Debt of the Company aggregating to INR 1,298 crores into Foreign Currency Debt of around USD 215 Million. Even after conversion of existing loans to FCNR (B) loan, there will not be any change in terminal date, repayment frequency and repayment schedule or security. The conversion is expected to bring about a reduction in Interest cost as the interest on the Foreign Currency Debt by the Company would be revised to 3 month Libor plus 650 bps p.a. post execution.

The conversion of the CDR debt into foreign currency debt will take effect once the relevant documents effecting the conversion are entered into between the relevant CDR lenders and the Company, in accordance with the terms therein.

Shares of 3i Infotech Ltd was last trading BSE at Rs.6.75, up by Rs.0.32 or 4.98%. The stock hit an intraday high of Rs.6.75 and intraday low of Rs.6.48.

The total traded quantity was 14.22 lakh shares as compared to 2 week average of 5.44 lakh shares.

Source : Equity Bulls

Keywords