BSES Ltd, the power arm of the Reliance group, is planning to raise Rs 500 crore debt through a private placement of non convertible debentures (NCDs). The company is planning to raise NCDs of Rs 1 lakh each carrying a coupon rate of 6.35 per cent.
BSES has said in a notice to the Bombay Stock Exchange that its board decided to go in for the issue at a meeting on July 28.
The company is raising funds for the third time within the last 12 months. In October 2002, it had raised $120 million through foreign currency convertible bonds supported by a standby letter of credit enhancement.
These bonds carry a coupon rate of 0.5 per cent and have the option of being converted into global depository receipts (GDRs).
Earlier, this year the company raised $100 million at very cheap interest rates.
Corporate India has been taking advantage of the soft interest rates to substitute high cost debt with low cost loans.
AV Birla flagship Grasim Industries, Gujarat Ambuja and another Reliance group company IPCL have in the recent past collectively raised over Rs 1,000 crore in foreign currency loans.
