SPIC has raised US$12.5 million in debt financing

May 2023 — SPIC has successfully completed a fundraising of US$12.5 million. The debt financing will be used to secure a term loan to modernize and expand the capacity of their existing urea plant.

Southern Petrochemical Industries Corporation Ltd. (SPIC) manufactures and sells fertilizer products, such as urea and nitrogenous chemical fertilizer. The company’s product offerings include primary nutrients, secondary nutrients, water soluble fertilizers, organic fertilizers, non-edible de-oiled cake fertilizers and bio pesticides. It operates several manufacturing facilities, including a naphtha/furnace oil-based urea plant in Tamil Nadu. SPIC is known for its products that sustain soil health throughout the agricultural cycle, but also act as environment-friendly catalysts to increase productivity through maximum efficiency of nutrient utilization.

Our role in the transaction

Oaklins’ team in India presented a compelling case of underwriting based on locked-in offtake and feedstock prices. It demonstrated the group’s collection ability, performance and conduct prior to and after the challenging periods it faced. The team placed a significant part of the debt of the total project cost in a highly cost-efficient manner, with repayments linked to the cash flow of the project. This was yet another demonstration of its ability to leverage its market reputation to communicate transaction merits with prospective lenders, placing high quality dislocated credit with high quality discerning lenders at optimum costs for borrowers.