CESC to raise Rs 2,000 cr through term loans

MUMBAI: RPG Group controlled power utility firm CESC on Tuesday said it has received shareholders approval for raising over Rs 2,000 crore through term loans from various financial institutions.

The company's shareholders had recently, authorised the board for mortgaging its assets for term loans to be financed by fims like including Infrastructure Development Finance Company, Industrial Development Bank of India, ICICI Bank, UCO Bank or any public financial institutions.

The board is authorised to mortgage its assets to IDFC for two term loans of Rs 58.88 crore and Rs 65 crore. While from IDBI CESC expects to avail two terms loans of Rs 50 crore and Rs 200 crore by mortgaging its assets, the company informed BSE.

The company plans to mortgage its assets in favour of ICICI Bank for foreign currency loans of $20 million, 15 million dollars and $50 million. Whilst from UCO Bank it would avail a term loan of Rs 200 crore.

It plans to raise Rs 150 crore through term loans from Punjab National Bank (PNB). Also, from any public financial institution it plans to raise up to Rs 1,000 crore, for any purpose by way of term loan, foreign currency assistance, debentures or non-fund based working capital facilities.

Besides, the shareholders also approved a dividend of Rs 3.5 on shares of Rs 10 each (35 per cent) for the year ended March 31. Shares of CESC closed at Rs 448, down 0.08 per cent on BSE.