The planned Bond is anticipated to have a 5-year tenor, be redeemable after 2.5 years (with a market standard call premium) and have a
bullet repayment structure, which will allow for Phase 2 capex with a strong cash buffer at maturity.
Earlier, UPL Corporation had raised a three billion dollar (about Rs 20 crore) five-year unsecured term loan with a
bullet repayment at end of tenure at London Inter-bank Offered Rate (LIBOR) plus 160 basis point per annum to part-finance the acquisition of Arysta Lifescience Inc.
The ICP-2 will have
bullet repayment at maturity and a tenor of 6 months.
Doha Bank said the facility will be used for general working capital purposes, and carries a margin of 100 basis points per annum over USD Libor and has a
bullet repayment at the end of the two-year tenor (with a further one-year extension option exercisable at the discretion of lenders).
The facility, which will be used for general working capital purposes, carries a margin of 100 basis points per annum over the dollar-denominated Libor (London Interbank Offered Rate) and has a
bullet repayment at the end of the two-year tenor (with a further one-year extension option exercisable at the discretion of lenders).
The bonds are backed by the full faith and credit of the Nigerian Government, with interest payable semi-annually to bondholders, while
bullet repayment will be made on the maturity date.
In a footnote, the bank noted that these were medium-term loans from China that were meant for balance of payments support with an inbuilt
bullet repayment feature, a maturity of two to three years and a floating rate based on the London Inter-bank Offered Rate (Libor).
For example, take a five-year loan with
bullet repayment, what is the difference between bank X and bank Y?
The long-term tranche also includes a
bullet repayment feature at the end of the 39 year term.
Being mostly short-term loans, gold loans are usually paid back in one shot - interest and principal together - at the end of the loan term (what is called '
bullet repayment').
For example, large annual amortisation payments will restrict cash available for reinvestment into growth or acquisitions, so a
bullet repayment structure is more likely to be appropriate.
