ASTL Restructures Rs22.6B Loans with Approval

Amreli Steels Limited (ASTL) revealed on Wednesday that it has secured approval to revise the repayment terms of loans amounting to Rs 22.6 billion, obtained from various banks and financial institutions.

The company communicated this milestone in a notice to the Pakistan Stock Exchange (PSX), stating that its Board of Directors endorsed the restructuring terms through multiple agreements, including the Master Restructuring Agreement (MRA) and related documents.

Under the restructuring plan, all restructured facilities, encompassing principal and mark-up, will benefit from a three-year moratorium period, except for existing long-term facilities, where principal payments are deferred for two years. The restructuring will span a 10-year tenor, effective from July 1, 2024.

Furthermore, approximately Rs 7.5 billion in conventional short-term facilities and Rs 3.5 billion in Islamic short-term facilities will be converted into long-term facilities. The mark-up rate will remain fixed at KIBOR throughout the restructuring period, with no additional spread.

To bolster the restructuring, Amreli Steels’ sponsors have pledged PKR 4 billion via an equity injection and the sale of non-core assets to secure additional working capital financing.

Established in 1984 and transformed into a public company in 2009, Amreli Steels specializes in the manufacture and sale of steel bars and billets.