JBF Industries has entered in a derivative contract for an ECB loan in JPY terms for an amount equivalent to $20 million to hedge the foreign exchange and interest cost. The observation period for this derivative contract started in July 2010 and ends in July 2013.
Besides, the company had repaid 20% of the loan amount in July 2011. The company has now paid additional 60% of the loan amount on July 04, 2012. Pursuant to this, the outstanding loan amount and derivative contracts gets reduced to 20% of the loan which will be paid in July 2013.
JBF Industries is engaged in the manufacturing of polyester chips, partially oriented yarn and polyester processed yarn/specialty yarn at its plants at Silvasa in the Union Territory of Dadra and Nagar Haveli and at Valsad (Gujarat). The company is one of the leading names in Polyester business in India.