We would like to inform that the Company has entered into an agreement dated 29th August, 2025 with Moderate Capital and Leasing Services Limited to avail unsecured Inter corporate loan ....
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SBEC Sugar has entered into an agreement on August 29, 2025, with Moderate Capital and Leasing Services Limited to avail an unsecured inter-corporate loan of up to Rs. 250 crore. The loan carries an interest rate of 15% per annum and is repayable on demand, with no security provided to the lender. The stated purpose includes working capital requirements and payment of sugar cane dues. The lender is related to the company's promoter group, making this a related party transaction, though the company has stated it is being done at arms' length.
This raises SBEC Sugar's debt burden by up to Rs. 250 crore at a relatively high 15% interest rate, which will increase finance costs. While the funds address short-term working capital and cane dues pressures, the demand-repayable nature and high cost of borrowing could strain cash flows if sugar cycle revenues underperform.