New Delhi : Bhushan Steel Ltd (BSL) has received an extension of its loans from the joint lenders forum for a tenure of 25 years under the 5/25 refinancing scheme, the beleaguered company told the exchanges. “The Joint Lenders Forum have agreed to extend loans of BSL for a tenure of 25 years under the said scheme. However, the respective authorities of the banks have to approve the scheme, which is under process with the respective banks.”
Reacting to the news, shares of Bhushan Steel breached the upper circuit, rising 19.92% to Rs 60.50 on the BSE. A consortium of bankers led by Punjab National Bank (PNB) have a total exposure of about Rs 40,000 crore in the company. Besides PNB, the other banks include State Bank of India, Canara Bank, Bank of India and Dena Bank.
Under the apex bank’s 5:25 scheme, banks can extend infrastructure firms’ repayment schedule to 25 years, and also have the option to refinance the loan at the end of every five years.
