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Altico Capital India Ltd, on Thursday, said that it has defaulted on interest payment of ₹19.97 crore on the external commercial borrowing (ECB) it had raised from Mashreqbank.
The non-banking finance company, in a stock exchange notice, said the interest default occurred on the gross principal amount of ₹340 crore. The ECB has a six years tenure and carries 11.65 per cent interest rate.
“Our failure to repay the amounts set out above may result in an acceleration of interest repayment/ redemption obligations in respect of non-convertible debt securities issued by us and may trigger a default in their timely repayments. We are evaluating options for resolving the liquidity crisis and will be engaging in discussions with various stakeholders for the same,” the company said.
As per the notice, Altico’s total amount of borrowings from banks/financial institutions is ₹4,361.55 crore (as on 12 September 2019).
Altico Capital focuses on senior secured lending to mid-income residential projects and commercial real estate sector across Tier-1 cities in India which include Mumbai, NCR, Chennai, Bangalore, Pune and Hyderabad.
To complement the strategy on providing financing solutions to the real estate sector, the company said that it also focuses on providing structured finance solutions to the infrastructure and other adjacent sectors.
According to Altico Capital’s website, its shareholders include Clearwater Capital Partners, Abu Dhabi Investment Council and Varde Partners.
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