Jubilant Energy N.V. Funding Agreement (3729X)

TIDMJUB

RNS Number : 3729X

Jubilant Energy N.V.

10 January 2014

Jubilant Energy N.V.

10th January, 2014

Jubilant Energy N.V.

("Jubilant" or "the Company")

Funding Agreement Signed

Jubilant is pleased to announce that on 9(th) January, 2014 it entered into a funding agreement with Jubilant Energy (Holding) BV ("JEHBV"), a Jubilant Bhartia Group Company*, for an amount of upto USD 45 million by way of a loan (the "Loan"). The tenor of the Loan is seven years with a capital moratorium period of three years and with repayment commencing thereafter in quarterly instalments. The Loan will bear interest at a rate of 6 month USD LIBOR plus 650 basis points per annum and reimbursement of 1.00 per cent. per annum guarantee commission, 1.5 per cent.of the loan amount as service fees and other nominal documentation charges.

These funds will be applied for funding the operations of the Company including debt repayments and servicing.

Concurrently, JEHBV has arranged funds against the guarantee of JEHBV's parent company and also secured against the Company's two principal operating subsidiaries.

The issuance of the Loan is deemed to be a related party transaction pursuant to AIM Rule 13. The Independent Directors of the Company (being the Board excluding Mr. SS Bhartia and Mr. HS Bhartia), having consulted with its nominated adviser, consider that the terms of the Loan are fair and reasonable in so far as its shareholders are concerned.

*JEHBV is directly or indirectly owned and controlled by Mr. SS Bhartia, who is a Non-Executive Director and Chairman, and Mr. HS Bhartia, who is Non Executive Director and Co-Chairman of Jubilant, who are its substantial shareholders, holding 85% of the voting rights of the Company in aggregate.

 
 Enquiries: 
 
  Jubilant Energy      Vipul Agarwal                    +91 120 4025700 
 Panmure Gordon      Callum Stewart, Adam James       +44 20 78862500 
 College Hill        David Simonson, Anca Spiridon    +44 20 7457 2020

This information is provided by RNS

The company news service from the London Stock Exchange

END

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