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Cairn India has extended by two year the repayment of a controversial USD 1.25 billion loan it had extended to its parent group firm.
The company has said in a filing that “Cairn India Holdings Ltd (CIHL), an overseas subsidiary of Cairn India Ltd, has decided to extend maturity of the loan of USD 1.25 billion, which was given for a term of two years in May, 2014, to THL Zinc Ltd (TZL), an overseas subsidiary of Vedanta Ltd, for a further period of two years.”
The company further said that the extension was “on arm’s length at a revised rate of interest of LIBOR + 450 basis points (bps) in the first year and at LIBOR + 475 bps in the second year as compared to the existing rate of LIBOR + 300 bps.”
