Financial Daily from THE HINDU group of publications
Saturday, Dec 27, 2003
Financial Daily from THE HINDU group of publications Saturday, Dec 27, 2003 |
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Logistics
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Shipping Corporate - Corporate Bonds JNPT raises Rs 125 cr thru second bond issue P. Manoj
New Delhi , Dec. 26 JAWAHARLAL Nehru Port Trust (JNPT) has mopped up Rs 125 crore from the market through a second unlisted bond issue in the space of a fortnight. The unlisted, long-term bond issue had two options - Rs 50 crore redeemable in 18 months with a put and call option after one year and Rs 25 crore redeemable in 18 months. The Rs 75-crore bond issue had a green shoe option of Rs 50 crore, which could be exercised either for both the options or in any one of the options. "JNPT exercised the green-shoe option in the first option itself since the rates were very attractive and the debt could be serviced in a year," a Shipping Ministry official said. The Port Trust, thus, raised Rs 100 crore (Rs 50 crore plus the green-shoe option of Rs 50 crore) under the first option at 5.40 per cent and another Rs 25 crore at 5.65 per cent. It had mobilised Rs 225 crore through a short-term bond issue earlier. The proceeds from the bond issues totalling Rs 350 crore were utilised to pre-pay the principal outstanding World Bank loan of Rs 468 crore. By borrowing funds from the market at 5 per cent-6 per cent interest, taking advantage of the low interest regime, JNPT will be able to save substantially on its debt-servicing cost. The existing World Bank loan carried an annual interest rate of 11.5 per cent. Together with the Rs 350-crore borrowed from the market, JNPT contributed Rs 118 crore from its internal resources and cleared the entire principal outstanding World Bank loan of Rs 468 crore on Thursday. "JNPT management handed over a cheque for Rs 468 crore to the Shipping Minister, Mr Shatrugan Sinha, on Thursday," the official said. The interest outstanding on the World Bank loan, pegged at Rs 727 crore (till March 31, 2003), will be converted into a non-Plan loan from the Government. "The rate of interest and the terms and conditions of the non-plan loan will be finalised shortly," the official said.
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