JSW Infrastructure arm secures ₹500-crore loan for Tuticorin Port expansion

MUMBAI : JSW Group firm JSW Infrastructure Ltd on Wednesday (December 18) 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.

“This is to inform that JSW Tuticorin Multipurpose Terminal Private Ltd, a wholly owned subsidiary of the company(Borrower) is to avail Rupee Term Loan facility of Rs 500 Crore (Rupees 250 Crore each from ICICI Bank & Canara Bank) for Development/Mechanization of North Cargo Berth-III (NCB-III)-Zone A, for handling Dry Bulk Cargo at V. O. Chidambaranar Port on design, build, finance, operate and transfer basis with capacity 6.96 million tons per annum (the project),” JSW Infrastructure said in a regulatory filing.

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.