Gremach Infrastructure Equipments & Projects will raise upto $50 million through Foreign Currency Convertible Bonds (FCCBs) to finance business plans.The coupon rate for the FCCB is 0.75% and the tenor of the instrument is five years and one day. The annual yield to maturity is likely to be between 6.75% and 7.25%. The cap for yield is six-month London Inter-Bank Offered Rate (LIBOR) plus 250 basis points, the company informed the Bombay Stock Exchange (BSE).The premium for conversion of bonds into stock is likely to be between 10-15%. These FCCBs will be listed on Singapore Stock Exchange. Standard Chartered Bank is the lead manager for this issue, it said.The company has already obtained shareholders nod to issue FCCBs upto value of $75 million.
