World Bank's private sector financing arm International Finance Corporation will lend $8.5 million to Modern Dairies.
The dairy company has entered into a 'Loan Agreement' with International Finance Corporation (IFC) for an External Commercial Borrowing of $8.5 million (about Rs 36 crore) subject to RBI approval, Modern Dairies said in a filing to the Bombay Stock Exchange.
The dairy firm had announced that it has entered into a 'Subscription Agreement' and a 'Shareholder Agreement' with IFC, under which IFC would acquire 46.50 lakh shares of Modern Dairies for Rs 27.90 crore.
Ernst & Young acted as financial advisor to Modern Dairies on the transaction.
IFC had earlier expressed an interest in providing a loan of up to $8.5 million and subscribing to 46.50 lakh shares of Modern Dairies on preferential basis for the expansion of the milk processing capacity of the company.
Source: Economic Times