Business Daily from THE HINDU group of publications
Wednesday, Sep 26, 2007
ePaper
Business Daily from THE HINDU group of publications Wednesday, Sep 26, 2007 ePaper |
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Overseas Borrowings Info-Tech - Telecommunications Essar raising $3.6 b in term loans Our Bureau Mumbai, Sept. 25 The Essar group has mandated a clutch of international banks to arrange $3.59 billion (over Rs 14,000 crore) in term loan against put options that exist in the Vodafone-Essar agreement. The group’s wholly owned subsidiary Essar Communications has mandated BNP Paribas, Citigroup Global Markets, Commerzbank AG and Standard Chartered Bank to arrange the term loan, which is also fully underwritten by the banks. When UK-based Vodafone acquired Hutchison’s stake in the wireless company Hutchison-Essar, Essar acquired certain liquidity rights under which it has the option to sell its 33 per cent shareholding in Vodafone-Essar to Vodafone for $5 billion or an option to sell between $1 billion and $5-billion worth of Vodafone Essar shares to Vodafone at an independently appraised fair market trading value. The term loan facility will be used “to refinance existing debts as well as to fund further investment and expansion for the wider Essar group,” said a statement from the group. The facility has a maturity date of December 8, 2011, and will pay a margin of 90 basis points per annum. It was launched on Tuesday to a group of banks, said the statement. Presentations to banks are scheduled in London, Dubai, Singapore and Taipei, it said. More Stories on : Overseas Borrowings | Telecommunications | Mergers & Acquisitions
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