Tulip to raise $125 mn via convertible bonds

New Delhi, June 26: Telecom service provider Tulip IT Services today said it has launched zero coupon convertible bonds to raise about 125 million dollars.

The company will utilise the fund for meeting its capital expenditure and expanding the infrastructure for the issuer's telecommunications network.

Tulip will also make overseas acquisitions and any other uses as may be permitted in accordance with applicable law, a statement said.

The five year zero coupon bonds will earn a yield of 7.00 per cent to 7.75 per cent per annum at maturity and the conversion price is expected to be set at a premium of between 30 per cent and 35 per cent, a statement said.

The bonds will be listed on the Singapore Exchange Securities Trading Ltd, NSE and BSE.

Barclays Capital is the Sole Bookrunner and Sole Lead Manager for the offering. State Bank of India and Bank of India are the Financial Advisors for the offering.

UNI