Tata Motors on Wednesday said it will raise 450 million dollars (Rs 1,832 crore) from the international market to meet product development expenditure and fund other corporate projects.
The committee of directors, at its meeting today gave in principle approval, for raising of additional long term resources of 450 million dollars, excluding green shoe option, by issue of appropriate securities in the international markets, Tata Motors told the Bombay Stock Exchange.
Tata Motors recently launched a mass transport passenger vehicle - Magic, developed on the platform of its popular mini truck Ace and a higher capacity van - Winger.
The company plans to roll out more variants in the commercial passenger vehicle segment and plans to invest Rs 5,000-6,000 crore over the next three years in the segment.
Shares of Tata Motors closed at Rs 686.90, up 3.53 per cent on the BSE.
Showing posts with label Overseas borrowings. Show all posts
Showing posts with label Overseas borrowings. Show all posts
Wednesday, June 20, 2007
Tuesday, June 19, 2007
PFC to mop up $1 b from overseas mkts
Power Finance Corporation (PFC) is planning to tap the overseas market to raise a whopping $1 billion in the current fiscal. The borrowing programme is aimed at meeting the funding requirements of the power sector, which requires an estimated Rs 8,50,000 crore during the 11th Plan to add 68,869 mw of fresh capacity.
The company also plans to raise Rs 9,000 crore of debt by floating power bonds in the domestic market to get wider retail participation. A portion of it would also be raised through FCCBs.
PFC is a nodal funding agency in the power sector that provides debt and quasi equity to projects. The company was listed in February after an IPO through which it raised about Rs 1,000 crore.
For its overseas borrowings, the company has secured RBI’s approval to raise $500 million through external commercial borrowings (ECBs). The official said after this fundraising exercise, the company would seek the apex bank’s approval for raising $500 million more in the overseas markets through a diversified portfolio of instruments such as floating power bonds, looking at the ADR/GDR route or lines of credit with international financial institutions such as ADB.
“The company’s first tranche of borrowings this year is already in an advanced stage. PFC would launch a roadshow next week in the US to raise $300 million through private placement. It would also seek approval to raise resources through Euro bonds. Another $200 million is proposed to be raised through syndicated loans. The entire borrowings programme would be launched in two months,” the official said.
Funds worth Rs 12,500 crore are expected to be raised by PFC in the domestic market this fiscal. Apart from bonds, it would raise medium-term loans worth Rs 3,500 crore from institutions.
Read more in The Economic Times article.
The company also plans to raise Rs 9,000 crore of debt by floating power bonds in the domestic market to get wider retail participation. A portion of it would also be raised through FCCBs.
PFC is a nodal funding agency in the power sector that provides debt and quasi equity to projects. The company was listed in February after an IPO through which it raised about Rs 1,000 crore.
For its overseas borrowings, the company has secured RBI’s approval to raise $500 million through external commercial borrowings (ECBs). The official said after this fundraising exercise, the company would seek the apex bank’s approval for raising $500 million more in the overseas markets through a diversified portfolio of instruments such as floating power bonds, looking at the ADR/GDR route or lines of credit with international financial institutions such as ADB.
“The company’s first tranche of borrowings this year is already in an advanced stage. PFC would launch a roadshow next week in the US to raise $300 million through private placement. It would also seek approval to raise resources through Euro bonds. Another $200 million is proposed to be raised through syndicated loans. The entire borrowings programme would be launched in two months,” the official said.
Funds worth Rs 12,500 crore are expected to be raised by PFC in the domestic market this fiscal. Apart from bonds, it would raise medium-term loans worth Rs 3,500 crore from institutions.
Read more in The Economic Times article.
SBI to raise $225m in bonds abroad
State Bank of India is set to raise $225 million from the overseas market this year by issuing perpetual bonds. The overseas issue opened on Monday and the bank is expected to price the bonds this week. The bank has appointed Citibank and JP Morgan Chase as merchant bankers to the issue.
The bank plans to raise a total of Rs 15,000 crore this year in the form of equity (tier-I) and debt (tier-II). The proposed issue, perpetual note, will be the first tranche of its tier-I borrowing this year. If the SBI Act is amended, the bank plans to raise close to Rs 6,000 crore by way of public issue. The balance would be raised from the debt market.
In February this year, SBI had raised $400 million by way of perpetual bonds at 6.43% and it had a call option in 2017. The proposed perpetual note, too, would have a call option at the end of 10 years. The proposed borrowing is a part of SBI’s $5 billion MTN issuance and is likely to be raised at 1.3-1.4% over Libor, which is now ruling at 6.6-6.7%.
Read more in The Economic Times article.
International rating agency Standard & Poor’s has assigned a ‘BB’ rating to the bank’s $225 hybrid issue. The rating of BB is sub-investment grade. However, the senior secured borrowing has been rated at BBB-, which is an investment grade.
The bank plans to raise a total of Rs 15,000 crore this year in the form of equity (tier-I) and debt (tier-II). The proposed issue, perpetual note, will be the first tranche of its tier-I borrowing this year. If the SBI Act is amended, the bank plans to raise close to Rs 6,000 crore by way of public issue. The balance would be raised from the debt market.
In February this year, SBI had raised $400 million by way of perpetual bonds at 6.43% and it had a call option in 2017. The proposed perpetual note, too, would have a call option at the end of 10 years. The proposed borrowing is a part of SBI’s $5 billion MTN issuance and is likely to be raised at 1.3-1.4% over Libor, which is now ruling at 6.6-6.7%.
Read more in The Economic Times article.
International rating agency Standard & Poor’s has assigned a ‘BB’ rating to the bank’s $225 hybrid issue. The rating of BB is sub-investment grade. However, the senior secured borrowing has been rated at BBB-, which is an investment grade.
Thursday, May 10, 2007
Gail to raise Rs 15,000 cr from overseas
GAIL (India), the country’s largest transporter and marketer of natural gas, plans to raise over Rs 15,000 crore through overseas borrowings over the next five years. This is part of the Rs 25,000 crore the company plans to spend in the 11th Five Year Plan ending 2012.
The company is also likely to sell part of its stake in Oil and Natural Gas Corporation (ONGC) to fund its projects, which include addition of almost 5,000 km of pipelines over the next five years.GAIL holds 2.4 per cent stake in ONGC, which at today’s share price of Rs 909 is worth Rs 4,672 crore.
The Company's debt to equity ratio is 0.12:1 which gives them the freedom to raise more debt. Moreover the company is close to being rated by Moody's, which will make it easier for them to raise money overseas.
The company has also lined up expenditure of Rs 2,744 crore during the current financial year. Of this, Rs 1,761 crore will be spent on laying new gas pipelines, Rs 500 crore on oil and gas exploration, Rs 146 crore on petrochemicals, and Rs 268 crore on new projects. GAIL currently generates around Rs 2,000 crore every year through its pipeline business.
Read more in The Business Standard article.
The company is also likely to sell part of its stake in Oil and Natural Gas Corporation (ONGC) to fund its projects, which include addition of almost 5,000 km of pipelines over the next five years.GAIL holds 2.4 per cent stake in ONGC, which at today’s share price of Rs 909 is worth Rs 4,672 crore.
The Company's debt to equity ratio is 0.12:1 which gives them the freedom to raise more debt. Moreover the company is close to being rated by Moody's, which will make it easier for them to raise money overseas.
The company has also lined up expenditure of Rs 2,744 crore during the current financial year. Of this, Rs 1,761 crore will be spent on laying new gas pipelines, Rs 500 crore on oil and gas exploration, Rs 146 crore on petrochemicals, and Rs 268 crore on new projects. GAIL currently generates around Rs 2,000 crore every year through its pipeline business.
Read more in The Business Standard article.
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