Indian Hotels repays Rs 840 cr debt

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Indian Hotels Company (IHCL) that owns the Taj, Vivanta, Gateway and Ginger brand of hotels across the country, has repaid $185 million (approximately Rs 840 crore) of debt raised to finance capital expenditure on new projects, renovations and investment in international subsidiaries.

The company has also restructured some of its rupee loans to optimise the interest outgo. IHCL’s interest outgo for the nine months ended December 2009 almost doubled to Rs 119.61 crore over the year-ago period.

“IHCL cleared the debt of $185 million with the help of Rs 750 crore proceeds earned from restructuring its shareholding in Sea Rock hotel project, as well as by raising fresh secured debt of Rs 300 crore from financial institutions in the fourth quarter of 2009-10,” an official in the know told Financial Chronicle. “The secured loans have been raised at a 9.5 per cent per year,” he added.

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