Alpen Capital India Private Limited acted as the merchant banker along with Rabo India to assist JK Paper with an issue of unsecured Foreign Currency Convertible Bonds (FCCBs) for an amount not exceeding Euro 35 million (approximately Rs 225 crore), it has been revealed.
These bonds were issued on a private placement basis to FMO (Netherlands), DEG (Germany) and PROPARCO (France) at an initial conversion price of Rs 65 per equity share of Rs 10 each, subject to adjustments for the FCCBs.
The FCCBs are convertible into equity shares anytime after 3.5 years from date of issue. If the FCCBs are not converted, they are repayable between the fifth and seventh years from the date of issue.
The issue of FCCBs was toward partly meeting capital expenditure of Rs 1,653.37 crore for the proposed expansion at JK Paper's Odisha plant.
The project is primarily for setting up a new or augmented fibre line with a capacity to produce approximately 215,000 TPA of pulp and paper machine for manufacturing 165,000 TPA of woodfree copy paper.
This will increase the total installed capacity from 240,000 TPA to 390,000 TPA.
"We are pleased to conclude this transaction with Alpen Capital India. We look forward to working with them in other areas where their value-added services will benefit our institution, our customers as well as our stakeholders," said JK Paper Limited managing director Harsh Pati Singhania.
"We are delighted to be the merchant banker on this complex transaction in partnership with Rabo India. We value our relationship with JK Paper and are happy to play a part in their future development," said Rohit Walia, executive vice chairman & CEO, Alpen Capital Group.
Alpen Capital India Private Limited is a subsidiary of Alpen Capital Group. It established operations in India in 2009 with offices in New Delhi and Mumbai.