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Board of GOCL Corporation decides to accept LoC/SBLC facility of USD 300 mn from United Bank of India

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Capital Market
Last Updated : Jan 17 2020 | 4:50 PM IST

At meeting held on 16 January 2020

The Board of GOCL Corporation at its meeting held on 16 January 2020 has decided to accept a line of credit/SBLC facility of USD 300 million from Union Bank of India (UBI). Out of this, USD 150 million is to support HGHL, a wholly owned subsidiary of the Company based in the United Kingdom for their business operations. The balance line of credit / SBLC facility of USD 150 million is kept for future needs.

This SBLC facility will be collaterally secured by the factory land parcel of the Company at Hyderabad and also will be guaranteed by Gulf Oil International (GOIL) along with a Cash Deficit Undertaking to UBI. For the aforesaid transaction(s), GOCL would be entitled to 100 bps per annum plus costs incurred for the SBLC facility, towards commission / charges for providing security for the said SBLC facility

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First Published: Jan 17 2020 | 4:32 PM IST

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