DyStar refinances an original credit
At the time of the acquisition of DyStar in 2010 the major financing source was a credit facility with the State Bank of India (SBI)
On August 3, 2012 DyStar Global Holdings (Singapore) Pte Ltd reports that it refinanced such SBI credit facility and is reducing borrowing cost and allowing at the same time to improve cash flow and to accelerate the strategic, long-term growth plans of the company. The refinancing allows further the release of worldwide assets that were pledged for the SBI credit facility.
DyStar was originally acquired in December 2010 by the Indian Kiri Dyes and Chemicals Group (today Kiri Industries) and belongs now to the Zhejiang Longsheng Group (PRC), the later explains also why the refinancing has taken place by necessity.
The transaction was commented by Harry Dobrowolski, CEO of DyStar: “This transaction was one of many strategic steps in the process of establishing DyStar as a long-term supplier of textiles dyes, chemicals and services to the global textile market and he feels comforting to have this financial flexibility worldwide especially whilst many global economies are facing difficulties”.