Financial Daily from THE HINDU group of publications
Saturday, Nov 13, 2004
Financial Daily from THE HINDU group of publications Saturday, Nov 13, 2004 |
|
|
|
|
|
Corporate
-
Corporate Bonds L&T issues more FCCBs to raise $25 million Our Bureau
Mumbai , Nov. 12 LARSEN & Toubro has agreed to issue additional foreign currency convertible bonds of $25 million on exercise of the green shoe option by the managers to the issue. The bonds will be issued on the same terms and conditions at which the FCCBs were priced on November 1, said the company in a notice to the stock exchanges today. The FCCB issue of November 1 amounted to $125 million and was launched in the international markets. The proposed additional issue was launched after market trading hours on November 10. The convertible bonds have a maturity of 5 years and are redeemable at a premium to provide a yield-to-maturity of 4 per cent per annum to investors. They carry a coupon of 1.25 per cent payable annually in arrears. The bonds are convertible into Global Depository Shares at a premium of 35 per cent over the BSE closing share price of Rs 831.70 on November 1; they can be converted any time after the 41st day after closing of the issuance until the close of business on the seventh day prior to maturity, said the release. The bonds are non-callable for a period of three years after which the company has the right to call these bonds subject to a call hurdle of 130 per cent of the conversion price. The bonds will be listed on the Hong Kong Stock Exchange. The proceeds from the issue would be used for financing the capital expenditure plans of the company and for possible international/domestic acquisitions. The resource base is expected to provide flexibility to the company to look at acquisitions, the company being open to growing both organically and inorganically.
More Stories on : Corporate Bonds | Engineering
Article E-Mail :: Comment :: Syndication :: Printer Friendly Page
|
Stories in this Section |
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | Business Line | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |
Copyright © 2004, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line
|