Tinna Rubber makes first tranche payment of US$ 1,00,000 to joint venture Mbodla Investments
Tinna Rubber and Infrastructure Limited has completed the remittance of the first tranche installment of a loan provided to M/s. Mbodla Investments (Pty) Ltd, a South African entity which is a Joint Venture (JV) of Tinna. The payment amounts to US$ 1,00,000, equivalent to INR 95,26,500.The loan amount was provided by Tinna Rubber and Infrastructure Limited to Mbodla Investments (Pty) Ltd. The funds are intended to support the borrower's capital expenditure and working capital requirements for its legitimate business purposes.
Tinna Rubber holds a 49% stake in Mbodla Investments, ensuring that the transaction is carried out on an arm’s length basis.
Loan Agreement Details
The unsecured Term Loan agreement between Tinna Rubber and Infrastructure Limited (Lender) and Mbodla Investments (Borrower) involves the following key terms:| Feature | Detail |
|---|---|
| Nature of Transaction | Unsecured Term Loan |
| Agreement Size | Up to USD 1,000,000 |
| Tenure | Upto June 30, 2031 |
| Interest Rate | 6 months SOFM + 5% per annum (presently 8.68%) |
| Repayment Start | After a one-year moratorium from the date of first disbursement |
| Repayment Schedule | 16 equal quarterly installments |
| Prepayment Clause | Prepayment of all or part of the loan is permitted without penalty |
Transaction Overview
The agreement details reveal that Mbodla Investments (Pty) Ltd, as a Joint Venture of Tinna Rubber and Infrastructure Limited, required the capital for expansion needs. The total size of the agreement is up to USD 1,000,000, which can be settled in one or more tranches.The loan provided by the lender has specific terms regarding repayment commencement, stipulating that principal repayments will commence only after a one-year moratorium period following the initial disbursement. The lender also retained the option to convert the outstanding loan amount or any part of it into equity at the face value of Ordinary shares of Rand 1 each.
TINNARUBR Stock Price Movement
On Friday, Tinna Rubber and Infrastructure Limited shares edged higher, closing at ₹1108.10, gaining 0.42% in the session. The stock traded within a daily range, bouncing between a low of ₹1088.5 and a high of ₹1114.9.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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