Hester Biosciences' Subsidiary Completes Loan Amendment Agreement with Gates Foundation
Hester Biosciences Limited has announced significant modifications to an existing loan agreement involving its wholly owned subsidiary, Hester Biosciences Africa Limited. The loan facility, originally executed in 2018, is being amended with the Gates Foundation. The company's involvement remains via a corporate guarantee provided by Hester Biosciences Limited in relation to the loan extended to its Tanzanian subsidiary.The amendments introduce several changes to the financial structure and operational terms of the facility.
The revised terms and financial details of the loan agreement are as follows:
| Detail | Specification |
|---|---|
| Borrower Entity | Hester Biosciences Africa Limited, Tanzania |
| Lender | Gates Foundation, United States of America |
| Existing Outstanding Facilities | USD 12 million |
| Nature of Amendments | Extension of tenor, revision of repayment schedule, and change in interest terms. |
| Revised Terms and Conditions | 1. Outstanding loan reduced to USD 5 million. 2. Accrued interest amounts waived. 3. No interest payable on further loan amount. 4. Revision in loan repayment schedule. |
Under the modified agreement, the corporate guarantee provided by Hester Biosciences Limited remains in place, though it stands modified pursuant to the amended agreement.
The amendments are expected to improve the liquidity and debt servicing position of the subsidiary. Hester Biosciences Limited stated that the company's exposure remains limited to the corporate guarantee obligations that have already been disclosed or contracted.
HESTERBIO Stock Price Movement
Today, Hester Biosciences Limited shares edged higher to close at ₹1839.1, securing a gain of 2.42% for the session. The stock gained on volume of 17,158 shares, which traded within a daily range anchored by a low of ₹1794.2.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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