New Delhi: TARC Limited announces refinancing of its existing debt along with Rs.250 crore additional working capital facility to be available on call. This strategic move is supported by a successful fund raise from a consortium of marquee lndian banks and financial institutions, underscoring the confidence of long-term and quality lenders.
Kotak Mahindra Bank, which led a consortium comprising prominent institutions such as Nomura Capital, Aditya Birla Capital, and STCI. This collaboration has been pivotal in securing {1,000 crores at highly favorable terms, reflecting the confidence of these institutions in TARC’s strategic direction and financial acumen besides the inherent merit of its Projects, their ongoing Sales and timely execution of construction activities.
The new borrowing cost at 12.75% p.a. will significantly enhance TARC’s cash flows, facilitating substantial savings. The reduction in interest cost will provide the Company with the financial flexibility necessary for growth and expansion.
The refinancing is secured only against the project cash flows of two of TARC’s promising developments: TARC Kailasa and TARC Tripundra. By anchoring the refinancing on expected revenues from these projects, TARC is effectively aligning its financial strategy with its operational performance.
Additionally, the remaining debt of TARC Limited is to be secured by project cash flows from TARC lshva. This forward-thinking approach positions the company for sustainable success in its new projects and other upcoming projects.
Mr. Amor Sarin, Manoging Director and CEO of TARC Ltd, expressed his enthusiosm, stating, “We ore extremely excited obout this transaction, ds it represents a significant positive advancement for our compony.”