L&T Infra Finance may raise funds via ECB next fiscal

Hyderabad, Feb 17 (PTI) L&T Infrastructure FinanceCompany, an L&T Group company, may undertake ExternalCommercial Borrowings (ECB) route to raise funds in the nextfiscal, said a senior official here today.

According to Ramesh M Bhujang, vice president-risk andasset management, company is exploring an option of going forECBc in the first half of next fiscal.

"As per RBI guidelines, we are eligible to raise 50 percent of our net worth which is at present between Rs 1100crore to Rs 1200 crore. We are in negotiations with a fewbanks. However we have not decided the exact amount. We willdecide that based on market conditions," Bhujang said.

L&T Infra has come up with its second tranche ofinfrastructure bonds recently.

The company intends to raise up to Rs 100 crore throughthese bonds with an option to retain an oversubscription of upto Rs 300 crore for allotment of additional bonds.

G K Shettigar, Vice president (Tresury) said the totaloutstanding advances of the company is Rs 5200 crore with adisbursement ratio of 35 per to power sector, 14 per cent inroad projects and 16 per cent in Oil and natural gas andtelecom sectors.