Infrastructure company SPML Infra today said successful implementation of the sustainable structuring of stressed assets (S4A Scheme) would convert about half of its debt to Optionally Convertible Debentures (OCD).
"Pursuant to the implementation of the said scheme, out of total debt of Rs 1,117 crore, a sum of Rs 545.85 crore is being converted into OCDs with a tenure of 10 years till 2027 carrying a coupon 0.01 per cent with yield to maturity of 8.15 per cent," a company statement said.
The payment of OCDs shall be in 20 quarterly instalments starting from the December quarter 2022 and ending in the September quarter of 2027, it added.
As a result of the successful implementation of S4A scheme, the company will have a cash flow benefit in terms of deferred and reduced debt service obligations of approximately Rs 70 crore per year for a period of five years, the company said.
SPML Infra said the S4A scheme has been signed with the super majority of lender banks.
The stock hit the upper circuit of 20 per cent to close at Rs 160.50 at BSE today.
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