Gujarat Pipavav Port today said it will now fund its expansion plans through internal accruals as it terminated loans from the multi-lateral agency IFC.
"In view of its business performance and cash flows, the board of directors decided to cancel the ECB (external commercial borrowing) loan from the International Finance Corporation and will now fund the ongoing expansion plan through its internal accruals," Gujarat Pipavav Port Ltd said in a filing to BSE.
GPPL further said it expects the cancellation of loan to not impact timely completion of the project or the company's ability to pay dividends in future.
"The company had accordingly informed IFC and has now received its confirmation for cancellation of loan. The necessary formalities in that connection are being complied in due course," it said.
IFC had earlier said that in South Asia, some of its major investments included Gujarat Pipavav Port.
"IFC's loan to Gujarat Pipavav Port will support expansion of existing container and bulk cargo handling facilities, enabling better infrastructure services, creating more jobs and boosting economic activity," IFC had said.
"With bulk of financing mobilised from other investors, the investment in Pipavav Port will also help the company diversify sources of raising funds in future," it had added.
