Strides Arcolab, a Rs 500 crore pharmaceutical company based in Bangalore, has announced the launch of $75 million direct, unsubordinated, unconditional and unsecured zero coupon foreign currency convertible bonds (FCCB) due 2012 to be listed on the Singapore Exchange.In addition, Barclays Capital, the lead manager, has an option to increase the issue size by an additional $25 million.Given a favourable credit and interest rate environment, Strides has decided to issue the bonds to meet capital expenditure, finance potential overseas acquisition programmes and invest in a foreign subsidiary. The bonds will be convertible into ordinary Strides shares, quoted in Indian rupees.The five-year zero coupon bonds have a yield to maturity rate of 7.20% to 7.95% per annum (calculated on a semi-annual basis), and the conversion price is expected to be set at a premium of 30% to 35% to the volume weighted average price of the ordinary shares of Strides on the National Stock Exchange between opening of trade and pricing.