Jubilant Energy N.V. Funding Agreement (5673D)

TIDMJUB

RNS Number : 5673D

Jubilant Energy N.V.

31 March 2014

31 March, 2014

Jubilant Energy N.V.

("Jubilant" or "the Company")

Funding Agreement Signed

Jubilant is pleased to announce that on 28 March, 2014 it entered into a funding agreement with Axis Bank Limited, Singapore Branch ("Axis Bank") for an amount of USD 15 million by way of a foreign currency loan ("Loan"). The tenor of the Loan is six years with a capital moratorium period of four and a half years and with repayment commencing thereafter in four semi-annual instalments. The Loan will bear interest at a rate of 6 month USD LIBOR plus 570 basis points per annum, a processing fee of 9 per cent. and other nominal charges. These funds will be applied for general corporate purposes including debt repayments and servicing.

The Loan is secured, inter-alia, by a corporate guarantee (the "Corporate Guarantee") of Jubilant Enpro Private Limited ("Jubilant Enpro"), the ultimate holding company of the Company and which is jointly owned and controlled by Mr. Shyam Sunder Bhartia and Mr. Hari Shanker Bhartia.

For the Corporate Guarantee of Jubilant Enpro, Jubilant has agreed to pay a commission of 1 per cent. per annum of the guaranteed amount to Jubilant Enpro. The Corporate Guarantee commission is deemed to be a related party transaction for the purposes of Rules 13 and 16 of the AIM Rules for Companies.

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 Corporate Guarantee are fair and reasonable in so far as its shareholders are concerned.

 
 Enquiries: 
  Jubilant Energy      Vipul Agarwal            +91 120 4025700 
                     Katherine Roe, Callum    +44 20 7459 
 Panmure Gordon       Stewart, Adam James      3600

This information is provided by RNS

The company news service from the London Stock Exchange

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