JSW Group firm JSW Infrastructure Ltd said its wholly-owned subsidiary, JSW Tuticorin Multipurpose Terminal Private Ltd, has secured a ₹500-crore term loan to fund the development and mechanisation of North Cargo Berth-III (NCB-III) at V.O. Chidambaranar Port in Tuticorin.
The loan facility, provided equally by ICICI Bank and Canara Bank, will finance the dry bulk cargo terminal, which is being developed on a design, build, finance, operate, and transfer (DBFOT) basis with a capacity of 6.96 million tonnes per annum.
As the sponsor, JSW Infrastructure has provided a comprehensive debt repayment shortfall undertaking to cover the loan’s principal and interest throughout its tenure. Key terms of the undertaking include maintaining at least 51% ownership in the borrowing entity, addressing any financing shortfalls or cost overruns through equity contributions or unsecured promoter loans, and ensuring sufficient debt service reserves or replacements as needed.
Additionally, the company has committed not to withdraw unsecured funds provided to address shortfalls during any event of default. The debt repayment undertaking will be recorded as a contingent liability on JSW Infrastructure’s financial statements.
