The Hindu Business Line : Konkan Railway plans Rs 100-crore bond issue

Konkan Railway Corporation Ltd plans to come out with a Rs 75-100-crore bond issue over the next two-three weeks. The company had raised Rs 350 crore through bonds a few months ago.

All the funds raised are aimed at reducing the cost of finances by redeeming high coupon bonds.

Funds

The funds would be raised through private placement.

"We are likely to approach banks, insurance companies and may be some high net worth individuals," said official sources.

Konkan Railway has received a letter of comfort from the Railway Ministry for raising up to Rs 550 crore, out of which Rs 350 crore have already been raised. The letter of comfort, which provides the Railway Ministry backing to these bonds, enables Konkan Railways to raise funds at a relatively lower rate. The company may not engage a lead banker for the issue. "We may look at mobilising the funds ourselves," said the official. For the Rs 350 crore issue, Konkan Railways had engaged lead managers that include Centrum Finance, AK Capital, Darashaw & Company, UTI, ICICI Securities and Allianz Securities.

With Rs 630 crore turnover, the organisation registered an operating surplus of Rs 130-crore profit in 2005-06, against Rs 80 crore in 2004-05.

Konkan Railways is owned jointly by the Ministry of Railways and the State governments of Maharashtra and Karnataka. The railway line was commissioned in 1998.

More Stories on : Railways | Corporate Bonds

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Airfare hike under wraps

Gulf Air to operate charter service

Panel to rationalise Indian's global routes

Indian outlines contingency plan

SCI places order for two container ships

Texmaco bags Rs 145-cr order from Concor

Konkan Railway plans Rs 100-crore bond issue