Tata Chemicals today said its subsidiary General Chemical Industrial Products is raising $300 million non-recourse loan from a consortium of banks to repay earlier debt.
Standard Chartered Bank, ABN Amro, ANZ Banking Group, HSBC, Calyon Bank and SBI have underwritten the loan.
Currently, the global syndication process is underway and likely to be completed by December, the company said in a release. "Despite the current global financial market conditions, it was heartening to see the faith shown by financial institutions in underwriting the funding," said PK Ghose, executive vice-president and chief financial officer.
"The funding has been done at a very attractive pricing and reiterates the strong fundamentals of our organisation," Ghose added. The company will use the funds to repay the $350 million bridge loan availed from another arm — Valley Holding.— to finance the acquisition of General Chemical in early 2008.
The balance $50 million has been met from internal accruals, Tata Chemicals said.
Tata Chemicals shares closed at Rs 140.50 today on National Stock Exchange, up 2.3 per cent from Friday.
