Indowind Energy honours $6.5-million FCCBs

Indowind Energy Limited, a Chennai-based company that sells ready-to-buy wind farm projects to corporates and green power to corporates and electricity boards, has honoured foreign currency convertible bonds (FCCBs) amounting $6.5 million (approximately Rs 40.4 crore) and cancelled the same.

With this, the total cancelled FCCBs amount to $15 million, which is 50% of the original issue size $30 million, the company said in a filing to the BSE on Thursday.

In August 2010, the board of directors of the company had approved the restructuring of $30 million FCCB bonds for conversion with a floor price of Rs 48.90 up to a maximum of Rs. 65 per share, based on Sebi guidelines.

The proposed restructuring, would help the company to increase the net worth, reduce contingent redemption liability and improve the debt-equity ratio for the growth of the company, it had said.   

The board, at its meeting in May 2012, had discussed and reviewed the FCCB issue and the on going 28-Mw windfarms project in Karnataka and Tamil Nadu. It also decided to explore the possibilities for raising an additional $30 million through euro convertible bonds (ECBs) to meet the gap in funding the project, which would be about $10 million and the balance $20 million for clearing the existing long-term loans and FCCB obligations as per the restructured terms.

Indowind Energy’s scrip is currently trading at Rs 3.55 on the BSE, up 0.28%, over the previous close of Rs 3.54 a share.