Last Updated : Friday, January 17, 2020 19:41:04

GOCL CORP approves UNION BANK OF INDIA’s $300 mln credit facility offer

HYDERABAD | MUMBAI | RAJKOT – In a regulatory update as submitted to the Indian Stock Exchanges, Hyderabad headquartered oil marketing & distribution multinational Gulf Oil’s Indian arm GOCL Ltd (formerly Gulf Oil Corporation Ltd) said of its board of directors having accepted line of credit/Standy Letter of Credit (SBLC) facility amounting to USD $300 million from Union Bank of India.

The filing as submitted by the company further explained, that, The Company, in association with its subsidiaries, has been pursuing various business opportunities in India and overseas from time to time, apart from the core business operations.

One such opportunity was the acquisition of Houghton International Inc, USA in the year 2012, which was recently combined with Quaker Chemical Corp, another USA based company, listed on NYSE (New York Stock Exchange).

The loan/facility of USD $300 million raised for the purpose of Houghton acquisition has been fully repaid.

The Company and its overseas subsidiary HGHL Holdings Ltd (HGHL) have substantially benefitted out of the said acquisition.

Since then, the Board of Directors has been looking for similar business opportunities as indicated from time to time and also at the last Annual General Meeting.

The Board of Directors of the Company has at its Meeting held on 16″ January 2020 decided to accept a line of credit/SBLC facility of USD $300 million from Union Bank of India (UBI).

Out of this, USD $150 million is to support HGHL, a wholly owned subsidiary of the Company based in the United Kingdom for their business operations.

The balance line of credit / SBLC Facility of USD 150 million is kept for future needs.

This SBLC facility will be collaterally secured by the factory land parcel of the Company at Hyderabad and also will be guaranteed by Gulf Oil International Limited (GOIL) along with a Cash Deficit Undertaking to UBI.

For the aforesaid transaction(s), GOCL would be entitled to 100 bps (basis points) per annum plus costs incurred for the SBLC facility, towards commission / charges for providing security for the said SBLC facility.

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