Alpen Capital helps JK Paper raise €35 m via FCCBs

PTI Dubai | Updated on June 07, 2011

Alpen Capital India Pvt Ltd has acted as the merchant banker along with Rabo India to assist JK Paper with an issue of unsecured Foreign Currency Convertible Bonds (FCCBs) for an amount not exceeding €35 million (approximately Rs 225 crore).

It has been revealed that these bonds were issued on a private placement basis to FMO (Netherlands), DEG (Germany) and PROPARCO (France) at an initial conversion price of Rs 65 per equity share of Rs 10 each, subject to adjustments for the FCCBs.

The FCCBs are convertible into equity shares anytime after 3.5 years from the date of issue. If the FCCBs are not converted, they are repayable between the fifth and seventh years from the date of issue. Issue of FCCBs was toward partly meeting the capital expenditure of Rs 1,653.37 crore for the proposed expansion at JK Paper’s Odisha plant.

The project is primarily aimed at setting up a new or augmented fibre line with a capacity to produce about 215,000 tonnes per annum of pulp and paper machine for manufacturing 165,000 TPA of woodfree copy paper. This will increase the total installed capacity from 240,000 TPA to 390,000 TPA.

“We are pleased to conclude this transaction with Alpen Capital India. We look forward to working with them in other areas where their value-added services will benefit our institution, our customers as well as our stakeholders,” said the JK Paper Ltd Managing Director, Mr Harsh Pati Singhania.

“We are delighted to be the merchant banker on this complex transaction in partnership with Rabo India. We value our relationship with JK Paper and are happy to play a part in their future development,” said Mr Rohit Walia, Executive Vice-Chairman & CEO, Alpen Capital Group.

Alpen Capital India is a subsidiary of Alpen Capital Group. The company established operations in India in 2009 with offices in New Delhi and Mumbai.

Alpen Capital India provides an entire range of merchant banking services to its Indian clients including issue management services, investment advisory services such as mergers & acquisitions advisory, debt and equity advisory and debt syndication.

The Alpen Capital Group also has offices in the UAE, Qatar, Oman and Bahrain.

Published on June 07, 2011

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