Swan Energy subsidiary repays ₹2,206 crore loan

Arushi Mishra Updated - March 04, 2024 at 11:41 AM.

The company informed that this prepayment is expected to result in savings of around ₹250 crore in interest payments for SLPL

Swan Energy Limited announced that its subsidiary, Swan LNG Private Limited (SLPL), has fully repaid a loan of approximately ₹2,206 crore along with accrued interest to a consortium of banks. The company informed that this prepayment is expected to result in savings of around ₹250 crore in interest payments for SLPL.

With the complete repayment, SEL’s debt has been reduced to ₹1,675 crore, marking a decrease from its external debt position of approximately ₹4,128 crore in September 2023, which further reduced to about ₹3,817 crore by December 2023. To facilitate the prepayment, SEL extended financial assistance of ₹2,210 crore to SLPL.

Moreover, SEL recently concluded a Qualified Institutions Placement (QIP), raising ₹3,000 crore. The QIP garnered interest from various institutional investors, including Quant Mutual Fund, SBI Life, LIC, Tata Mutual Fund, and numerous domestic and foreign institutions and family offices.

The company informed that the funds procured through the QIP will be utilised for the modernisation of the recently acquired erstwhile Reliance Naval and Engineering Limited (RNEL) shipyard at Pipavav. Additionally, a portion of the funds will be allocated to project expansion and debt reduction initiatives.

However, the shares were down by 1.29 per cent to ₹721.40 at 10:50 am on the BSE.

Published on March 4, 2024 06:11

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