Financial Daily from THE HINDU group of publications
Wednesday, Jun 23, 2004
Financial Daily from THE HINDU group of publications Wednesday, Jun 23, 2004 |
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Corporate
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Overseas Borrowings Dishman Pharma debt issue closes Our Bureau
Mumbai , June 22 DISHMAN Pharmaceuticals and Chemicals on Tuesday announced closure of its estimated $22 million debt issue programme. This issue was structured and syndicated by Rabo India Finance, with participation from multilateral agencies such as the FMO of the Netherlands and DEG of Germany. This deal is structured in the form of a future flow securitisation of the receivables from its long term contract manufacturing agreement with Solvay Pharmaceuticals BV, the Netherlands, a Rabo release said. This structured term debt facility with a mix of external commercial borrowings (ECB) in euros and loan-denominated Indian Rupee, will result in lower cost funds being made available to Dishman Pharma on the strength of the long-term supply contracts. The funds would be used for future expansion and further capability building activities in its successful contract research and manufacturing services (CRAMS) business, the note said. According to Mr J.R Vyas, Managing Director, Dishman Pharma, "This low cost debt will ensure overall cost reduction through substitution of existing high cost by low cost rupee debt and funding of future capital expenditure from the low-cost ECB."
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