SPML Infra has inked a documentation relating to the S4A Scheme of company on November 1, 2017 with the super majority of the lender banks. This marks a successful implementation of the S4A Scheme for SPML Infra. Pursuant to the implementation of the said scheme, out of the total debt of Rs 1,117 crore, a sum of Rs 545.85 crore is being converted into Optionally Convertible Debentures (OCDs) with a tenure of 10 years (2027) carrying a Coupon rate of 0.01% with a YTM of 8.15%.
However, in the first 5 years only the said Coupon of 0.01% will be paid and the payment of the effective YTM for the said first 5 years will commence from the 6th year till 10th year. The repayment of such OCDs shall be in 20 Quarterly installments starting from quarter ending December, 2022 and ending on the quarter ending September, 2027.
As a result of successful implementation of S4A scheme the company will have a cash flow benefit in terms of deferred and reduced debt service obligations of around Rs 70 crore per year for a period of 5 years. The said S4A Scheme will support its working capital fund base resulting in strengthening the business of the company followed by the profitable revenue growth.
SPML Infra is a single source solution provider for various multi disciplinary engineering and infrastructure services from conceptualization to maintenance in water, power, environment and infrastructure projects.