Cords Provides Update on Latest Developments

Wednesday, Jun 29, 2011

The on-going steep hikes in the monetary policy rates are subsequently causing further increase in the interest costs of almost all industries. Cords Cable Industries, on its part, is aggressively taking all necessary initiatives in order to minimize the impact of these interest rate hikes with an ultimate aim of value maximization for its investors.

Cords Cable Industries is pleased to inform its Shareholders that with the support of its financing partners, the company, in order to protect its projected cash flows from the on-going upward volatility in the interest rates, has successfully converted an amount of INR 200 million (approx. USD 4.65 million) from a floating interest rate of 13.75% p.a. to a fixed rate of 10.50% p.a. (fixed @ 10.50% p.a. for the entire tenure of the loan).

With this finance cost reduction measure, the company has, therefore, now converted a substantial portion of its term borrowings in fixed interest rate loans at substantially lower cost as compared to the cost presently prevailing in the market. Consequently, going forward, the company expects this step to give a further boost to its financial performance.

This statement has been issued to apprise Cords Stakeholders of the latest developments in the company.  Cords Cable Industries is committed to deliver sustainable value to its Shareholders. 

Source: Cords Cable Industries