TARC Limited Secures Significant Debt Refinancing of Rs. 1,000 Crores

TARC Limited announces refinancing of its existing debt along with Rs. 250 crore additional working capital facility to be available on call. This strategic move is supported by a successful fund raise from a consortium of marquee lndian banks and financial institutions, underscoring the confidence of long-term and quality lenders.

Key Features ofthe Refinancing Plan

1. Lead Consortium: Kotak Mahindra Bank, which led a consortium comprising prominent institutions such as Nomura Capital, Aditya Birla Capital, and STCI. This collaboration has been pivotal in securing Rs. 1,000 crores at highly favorable terms, reflecting the confidence of these institutions in TARC's strategic direction and financial acumen besides the inherent merit of its Projects, their ongoing Sales and timely execution of construction activities.

2. Favorable Borrowing Cost: The new borrowing cost at 12.75% p.a. will significantly enhance TARC's cash flows, facilitating substantial savings. The reduction in interest cost will provide the Company with the financial flexibility necessary for growth and expansion.

3. Security of Debt: The refinancing is secured only against the project cash flows of two of TARC's promising developments: TARC Kailasa and TARC Tripundra. By anchoring the refinancing on expected revenues from these projects, TARC is effectively aligning its financial strategy with its operational performance.

4. Future Planning: Additionally, the remaining debt of TARC Limited is to be secured by project cash flows from TARC lshva. This forward-thinking approach positions the company for sustainable success in its new projects and other upcoming projects.

Mr. Amar Sarin, Managing Director and CEO of TARC Ltd, expressed his enthusiasm, stating, "We are extremely excited about this transaction, as it represents a significant positive advancement for our company."

Source : Equity Bulls

Keywords

TARC Refinancing DebtFacility