Cals may raise funds via FCCBs

Spice Energy-promoted Cals Refineries plans to raise fund through foreign currency convertible bonds (FCCB) to partly fund its capital expenditure of $1 billion to set up a 5 million tonne per annum (mtpa) refinery at Haldia.

The company raised $200 million through a global depository receipt on the Luxembourg Stock Exchange in November, attracting investments from the Dubai Investment Group, a part of Dubai Holding, and London's RP Capital. It is further planning to raise $100-200 million from a strategic investor for which it is considering the offers.

The company did not disclose the amount that it wishes to raise through FCCB. It declined to comment calling the plan to be at a "premature stage."

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Cals Refineries buys Petro Canada`s units for $110 mn

Cals Refineries buys Petro Canada`s units for $110 mn

Cals Refineries, owned by the privately held Spice Group, has bought two distillation units and a delayed coker plant of Petro Canada for $110 million to enhance its capacity of processing complex crude oil that has high sulphur content and is heavy with density.

The company is in the process of setting up about 5 million tonnes per annum (mtpa) capacity refinery at an investment of $1 billion in Haldia by relocating an existing refinery of Bayernoil in Ingolstad, Germany.

Cals Refineries had signed a memorandum of understanding with the world's third largest energy company, BP, for a crude oil supply and product offtake deal a few months ago. Cals Refineries raised $200 million through a global depository receipt (GDR) issue on the Luxembourg Stock Exchange in November, attracting investments from the Dubai Investment Group, a part of Dubai Holding and London's RP Capital. It is now hoping to raise a further $100-200 million from a strategic investor.

Read more in The Business Standard article.