Non-Banking Financial Company (NBFC) Sunshine Capital Ltd. has sanctioned an amount of Rs 1964 million to Man Stainless Steel Tubes Limited (MSSTL) to support the development of a state-of-the-art manufacturing unit in Kathua, Jammu & Kashmir.
This project, which involves the production of Non-API Electric Resistance Welded (ERW) Carbon Steel Pipes, marks a significant expansion in the manufacturing sector, with a planned capacity of 2,50,000 metric tons per annum.
By financing MSSTL’s new manufacturing unit, Sunshine Capital is supporting a key player in the steel tube industry and solidifying its presence as a major financier in the manufacturing sector. This move underscores Sunshine Capital’s commitment to leveraging emerging opportunities within the industrial landscape.
The total cost of the manufacturing unit is estimated at Rs 2807 million. Sunshine Capital has structured the financing through a combination of a Rupee Term Loan (RTL) of up to Rs 1964.9 million and a Capex Letter of Credit (LC) amounting to Rs 1450 million, acting as a sublimit of the RTL facility.
The financial facility will cover a substantial portion of the capital expenditure required for the project, which is expected to be completed by April 2025. The loan term is set for nine years, including a 12-month construction period and a 12-month repayment moratorium, providing MSSTL with the necessary financial flexibility to ensure the successful completion of the project.
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