Jubilant says that on 17th September, 2013 it entered into a funding agreement with two Jubilant Bhartia Group companies. The agreement allows for borrowing of up to INR 2,700 million (approximately USD 45 million) in aggregate, for a period of three years and will be structured as unsecured loans (the "Loans").

The Loans will partly be denominated in Indian rupees and partly in US Dollars and will bear interest at a rate of 15.50% p.a. and 6 month USD LIBOR plus 3% p.a., respectively. The Loans may be drawn down in one or more tranches at any time until 31 March 2014, with both the amount and denomination of each tranche at the discretion of the Company. These funds will be applied to funding the operations of the Company.

The issuance of the Loans is deemed to be a related party transaction pursuant to AIM Rule 13. The Independent Directors of the Company, having consulted with its nominated adviser, consider that the terms of the Loans are fair and reasonable in so far as its shareholders are concerned.

Tags: Jubilant Energy