JSW Steel's $275 million overseas borrowing process is likely to get completed by next month, a senior official said today.
The funds raised through this overseas borrowing issue will mainly be utilised for funding the outstanding foreign currency convertible bonds worth $274.40 million, which are redeemable on June 28 this year.
"We have already launched the $275 million ECB. $200 million is already tied up and even in the green shoe we are very confident that it will be tied up. We have 45 days and it will be completed in the next month," JSW Steel Joint Managing Director and CFO Seshagiri Rao told PTI.
On February 21, JSW Steel said it plans to raise up to $275 million through overseas borrowings, including a green-shoe option of $75 million.
Green shoe means that JSW can increase its fund raising by $75 million, if the response is higher than expected.
The lenders of the ECB facility would have the option to convert the whole or part of the loan into equity shares of JSW, the company had said.
The company has kept the conversion price of loan into equity shares at Rs 892.99 apiece, which is 10% above the floor price and is in accordance with the rules laid down by Finance Ministry for issue of such convertible instruments.
As on March 31, 2011, JSW had an outstanding FCCBs worth $274.40 million, which are redeemable on June 28 this year, its annual report for FY'11 showed.
The money was raised in 2007-08 to part-finance company's capital expenditure, mainly on increasing the capacity of its Vijayanagar steel plant in Karnataka to 10 million tonnes per annum.
Shares of the company closed at Rs 808, higher by 1.74% on the BSE.
On the West Bengal plant, he said, "We are very committed to this project and are waiting for some clearances."
Regarding the effect of strengthening rupee on its EBIDTA margin for subsequent quarters, he said the margins are not likely to get impacted, however there can be some "translational losses".