<article><a href="http://dealstreetasia.com/tag/ifc" target="_blank" rel="noopener noreferrer">International Finance Corporation (IFC)</a>, a part of the<a href="http://dealstreetasia.com/tag/world-bank" target="_blank" rel="noopener noreferrer"> World Bank group</a>, is proposing to extend a debt of $35 million to Indian conglomerate DCM Shriram Ltd to support its expansion plans.</article>

<a href="http://dealstreetasia.com/tag/ifc" target="_blank" rel="noopener noreferrer">International Finance Corporation (IFC)</a>, a part of the<a href="http://dealstreetasia.com/tag/world-bank" target="_blank" rel="noopener noreferrer"> World Bank group</a>, is proposing to extend a debt of $35 million to Indian conglomerate DCM Shriram Ltd to support its expansion plans.
According to an official disclosure, IFC &#8216;s proposed investment consists of an A-loan by way of an external commercial borrowing (ECB). The loan is for a period of 11 years.
DCM Shriram&#8217;s main businesses include an agribusiness, which comprises production of fertiliser, seeds, sugar and trading of agricultural inputs, and a Chloro-Vinyl business, which includes manufacturing of caustic soda, chlorine and polyvinyl chloride (PVC). It also has non-core businesses such as the Fenesta building systems, windows and doors.
The loan from IFC will aid the company&#8217;s brownfield expansion of its existing sugar plant at Hariawan, located in Hardoi district in Uttar Pradesh, by an incremental 5000 tonnes of cane per day (TCD). The funds will also be used for installation of a 30 MW cogeneration power plant using bagasse as fuel in Hariawan; as well as the expansion of its distillery capacity in Ajbapur.
According to IFC&#8217;s disclosure, the total cost of the project is estimated to be around Rs 6,031 million ($86.1 million).
IFC and DCM Shriram have a long-standing relationship dating back to 2004, according to IFC&#8217;s records. It had first provided a $30 million long-term loan, which supported the expansion of the company’s Chlor-Alkali, PVC resin and carbide production facilities in the Indian state of Rajasthan. Over the years, it has extended many such loans including a $50-million long-term loan in 2008 to help finance environmental upgrades that minimise incremental effluent discharges, as well as additional capacity expansions for its rapidly growing chemical and sugar operations.
In 2016, the investment firm extended $60-million debt funding to DCM Shriram to support the company&#8217;s capital expenditure plans of $122 million.
Publicly listed DCM Shriram had reported revenues of around $1.06 billion and a net profit of around $104 million for the financial year ended March 31, 2018. The company had a market capitalisation of approximately $866 million as of March 22, 2019.
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IFC, part of World Bank group, is proposing to extend debt of $35 million to Indian conglomerate DCM Shriram Ltd to support its expansion plans.

IFC mulls $35m loan package for India's DCM Shriram

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IFC mulls $35m loan package for India's DCM Shriram

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