CLVL ups loan cap to Rs800m under revised terms with Danish Elahi

July 26, 2024 (MLN): The Board of Directors (BoD) of Cordoba Logistics & Ventures Limited (CLVL) has approved changes to the existing Loan Agreement with Danish Elahi (lender), wherein the maximum amount of lending previously capped at Rs200 Million shall stand enhanced to Rs800m.

According to a notice issued by the company, the board decided that the rest of the provisions of the Loan Agreement will remain the same, including the Mark-up of 3 months KIBOR+2%.

The exception here is that the repayment of the markup, originally scheduled to begin on July 1, 2024, will be deferred to commence on July 1, 2025.

Moreover, the company retains the option to make early pre-payments of both the principal amount and the markup.

Additionally, the board has authorized changes to the Loan Agreement dated September 28, 2023 entered into between a subsidiary of the Company namely Cordoba Financial Services Ltd (CFS).

This amendment is made specifically to cater for the conversion of such loan into equity in terms of the resolution and deferment of the repayment of the markup and other related party liabilities, if any.

Furthermore, the company is authorized by the board to convert the outstanding loan to the extent of the principal amount, amounting to Rs113.4 million into equity/shares of CFS of Rs.10 each.

Accordingly, CLVL will make equity investments of the said amount, in its associated company CFS via conversion, in one or more tranches as determined by the Board.

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