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Chennai, 19 March 2008:Sical Logistics Ltd, India’s leading provider of multi-modal integrated logistics solutions, today announced that it has achieved financial closure for its greenfield iron ore terminal project at Ennore Port.
YES BANK, India’s new age private bank, is the lead arranger and sole underwriter for the INR 3.4 billion loan, the other members of the loan syndicate being United Bank of India, UCO Bank and India Infrastructure Finance Company Ltd.
The project is being undertaken by a special purpose vehicle (SPV), Sical Iron Ore Terminals Ltd, promoted by Sical Logistics, with 89% equity stake, and L&T Infrastructure Development Projects Ltd.
The iron ore terminal is being developed on a build-operate-transfer (BOT), revenue-sharing contract with Ennore Port for 30 years including the construction period. The terminal will have a capacity for 12 million tonnes of cargo per year. Facilities include a jetty, ship loader, mechanized handling system with conveyor, storage, and wagon unloading system.
Initially, the terminal will handle Panamax and Cape size vessels up to 150,000 MT DWT; after dredging, the terminal would be able to handle vessels of 250,000 MT DWT. Other features include the capability of an average 75,000-tonnes-per day ship loading rate; a stockpile area that can store 2.4 million MT of iron ore; and a railway wagon unloading system that can handle up to twelve 3500-tonne rakes per day.
Construction work at the terminal began recently. In-principle approval has also been obtained from the Indian Railways for dedicated rail siding.
COMMENT FROM ASHWIN MUTHIAH, CHAIRMAN, SICAL LOGISTICS
The financial closure of the entire debt component for Sical Iron Ore Terminals was a significant achievement considering the market conditions, said Sical Logistics Chairman Ashwin Muthiah.
“We are impressed with the dedication and professionalism of the team at YES BANK; taking up and delivering on the responsibility of underwriting and arranging an INR 3.4 billion loan in a single shot is no doubt a proud achievement for YES BANK,” Ashwin Muthiah said.
The Ennore terminal will open up major possibilities, both in terms of direction and volume of movement, given its location on India’s eastern coastline, close to the strong demand centers in the Asia-Pacific, Ashwin Muthiah said.
The terminal further strengthens Sical’s strategic framework of multi-modal integrated logistics, Ashwin Muthiah said. “Taken together with Sical’s trucking and container train operations, the value proposition to the customer is clear--a significant debottlenecking of the supply chain, resulting in a seamless flow from the mines to the terminal and to the ultimate destination ports,” he said.
COMMENT FROM RANA KAPOOR, FOUNDER/MD AND CEO, YES BANK
“We are delighted to have met the expectation of various stakeholders for the project and are extremely pleased at the outcome of the transaction because of its importance to the state of Tamil Nadu and the country,” said Rana Kapoor, Founder/Managing Director & CEO, YES BANK.
“YES BANK has evolved from a regular provider of debt capital to a facilitator and arranger of capital raising and has assisted clients in obtaining superior financial returns in a risk-mitigated well structured manner,” Mr Kapoor said.
About Sical
Sical Logistics Ltd is India’s leading provider of integrated solutions for multimodal bulk and containerized logistics and offshore logistics, annually handling nearly 22 million tonnes of bulk cargo and 500,000 TEUs of containerized cargo.
The services of the company are segmented as:
- Bulk—stevedoring; port terminals; customs and agency services; trucking; railroad/ warehousing
- Container—container terminals; inland container ICD; CFS
- Offshore—platform supply vessel; cutter suction dredger
Sical's delivery network includes an exclusive walk-in berth at Chennai for ships carrying bulk cargo; a container terminal at Tuticorin; 450,000 square feet of storage across over 100 warehouses; owned and regularly contracted fleet of nearly 3000 transport vehicles; container freight stations at 3 locations across India; Sical Torino, a deepwater capable platform supply vessel supply doing duty in the North Sea, and Sical Portofino, a cutter section dredger in service at the Chinese port of Ri Zhao. Sical's FY2006-07 revenue was INR 8.9 billion on INR 301.9 million equity capital.
About YES BANK
YES BANK, India’s new age private sector bank, is the outcome of the professional commitment of its founder, Rana Kapoor, supported by his highly competent top management team, to establish a high quality, customer centric, service driven, private Indian bank catering to the industries of India’s future.
YES BANK has adopted international best practices, the highest standards of service quality and operational excellence, and offers comprehensive banking and financial solutions to all its valued customers. A key strength and differentiating feature of YES BANK is its knowledge driven approach to banking and an unprecedented customer experience for its retail and wealth management clients.
YES BANK is steadily building corporate and institutional banking, financial markets, investment banking, corporate finance, business (SME) and transactional banking, retail banking and wealth management business lines across the country. The bank’s constant endeavor is to provide a delightful banking experience expressed with simplicity, empathy and totality.
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