Leading agro chemical company UPL on July 24 said its wholly-owned subsidiary has arranged EUR 100 million (approximately Rs 768.80 crore) loan at zero interest rate to meet the working capital requirements across the group.
UPL Corporation has arranged the financing, and the transaction is expected to be completed in August-September 2019 after receipt of required approvals, the company said in a regulatory filing.
“The short tenor loan carries zero running coupon and is the first such financing raised by the group,” UPL said.
The facility is proposed to be arranged by Cooperatieve Rabobank UA, the leading Dutch Food and Agri-focused bank.
Earlier, the UPL Corporation had raised USD 3-billion five years unsecured term loan to part finance the acquisition of Arysta Lifescience. The loan was jointly syndicated by MUFG Bank and Cooperatieve Rabobank UA.
The term loan was later swapped into EUR equivalent of USD 1.5 billion at a fixed rate of 1.50 percent annum and USD 400 million into JPY at fixed rate of 1.15 percent per annum as substantial business is in these currencies would provide a natural hedge, the UPL said.
With its acquisition of Arysta Lifescience in January 2019, UPL became the fifth largest overall and largest post patent company in the agri-chem space and reported revenues and EBITDA of Rs 21,837 crore and Rs 4,114 crore in 2018-19 fiscal, respectively.