New Delhi, Jul 4 (PTI) Power utility firm CESC Ltd on Tuesday said it will seek shareholders' nod to mortgage its immovable or movable properties for financial assistance and term loans of up to Rs 1,900 crore.

According to the notice for the AGM (Annual General Meeting) scheduled on July 29, the company will mortgage properties in favour of Bank of Baroda for a term loan of Rs 300 crore; State Bank of India for a term loan of Rs 300 crore and Union Bank of India for a term loan of Rs 300 crore.

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Similarly, it will also mortgage properties in favour of any public financial institution to avail financial assistance of a sum not exceeding Rs 1,000 crore.

The resolution is listed on the agenda of the AGM on July 29, 2022.

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The company explained that in order to finance a part of its capital expenditure requirements and for other financing purposes, it, from time to time, has availed various term loans from banks and financial institutions as mentioned in the notice for AGM.

The said term loans are required to be secured, inter alia, by creation of charge and/or equitable mortgage on the company's movable and/or immovable properties with such ranking of charges as may be required under the respective terms of sanction, it stated.

Further, it stated that for undertaking various projects/capital expenditure as well as for refinancing any existing financial assistance and/or for any other business purpose, the company may avail of various rupee and/or foreign currency assistance, debentures/other debt securities/non-fund based working capital assistance, which may also be required to be secured by mortgage/charge over the company's immovable and movable properties with such ranking of charges as may be required under the respective terms of sanction.

In order to facilitate creation of such mortgage/charge expeditiously when so required in future, the company will avail fresh financial assistance for a sum not exceeding Rs 1000 crore, it said.

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