Kanoria Chemicals raises 20 million dollar through FCCBs

New Delhi, May 31 (UNI) Kanoria Chemicals and Industries Ltd (KCI) today announced it has raised 20 million dollar through Zero Coupon Foreign Currency Convertible Bonds (FCCBs).

The money raised will be utilised to fund inter alia expansion of Chlor Alkali capacity with simultaneous expansion in capacities of various chlorinated derivatives.

The bonds will be convertible into equity shares at a conversion price of Rs 160.00, which represents a 51.73 per cent premium to the NSE closing price of Rs 105.45 as of yesterday. The bonds have a tenure of five year and one week and bear a yield-to-maturity of 7.5 per cent.

Silverdale Services Ltd, London, was the Sole Lead Manager for the offering.

''The commissioning of an additional 25 MW power project in December 2005 and 40,000 TPA Caustic Soda plant in April 2006 has boosted the fundamentals of the company. With this funding, KCI is fully equipped to implement its next phase of expansion,'' KCI Chairman and Managing Director R V Kanoria said in a statement released here.

KCI is a leading manufacturer of Chlor-alkali and Alco-chemical based intermediates with a portfolio comprising over 15 products.

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