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Portfolio/Calcom Cement India Ltd (Restructuring)

USD 32.5 million loan to Calcom Cement India Ltd (“Calcom”), to restructure previous financing for a 1.7 MTPA integrated cement plant in north east India

Calcom Cement India Ltd Restructuring
Tools
India

Overview

DATE OF TRANSACTION

December 2015

COUNTRY

North East India

FINANCING PARTNERS

FMO

GUARANTCO GUARANTEE

USD 32.5 million

Sector

Inputs to Infra

TOTAL TRANSACTION AMOUNT

USD 32.5 million

GuarantCo Benefits

When Calcom encountered financial difficulties in 2011/2012 and defaulted on its debts, GuarantCo partnered with FMO (then a shareholder in Calcom) to secure a sale of the project to new owners, thus rescuing the project. However, in its final stages, the project has faced cost overruns, which its local lenders were not able to fund completely. GuarantCo’s involvement in the various stages of the project has been critical in ensuring its completion.

Development Benefits

Calcom is building north-east India’s largest cement plant. It is one of the largest private industrial employers in this remote region and a key contributor in reducing high cement prices caused by lack of local capacity. The cement produced by the project is expected to be used in various hydropower and road sector projects, and for constructing housing for over 300,000 people

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