Financial Daily from THE HINDU group of publications
Thursday, Feb 14, 2002

News
Features
Stocks
Port Info
Archives

Group Sites

Money & Banking - Corporate Bonds


Krishna Jala Nigam plans Rs 350-cr bond issue

Our Bureau

MUMBAI, Feb. 13

THE Karnataka-based Krishna Bhagya Jala Nigam Ltd (KBJN) has planned an issue of redeemable non-convertible bonds worth Rs 350 crore for cash at par by February 28. The company plans to issue tax-saving infrastructure and regular return bonds.

"The bonds have been guaranteed by the Karnataka Government for timely payment of principal and interest. An escrow account has been opened for repayment,'' Mr B. Parthasarathy, Managing Director, KBJN, told presspersons here on Wednesday.

Both the infrastructure and regular return bonds will have a face value Rs 5,000. For infrastructure bonds, investors will have the option of investing for three years with an interest rate of 10.50 per cent.

Five-year investments will have a put-and-call option after three years with a 10.50 per cent interest rate. The rates will increase to 10.75 per cent for the fourth and fifth year.

The money raised will be used to fund the Upper Krishna project.The bonds have been assigned the "A+(SO)'' rating by Crisil and "LA+ (SO)'' by ICRA.

The ratings indicate timely payment of financial obligations of the instrument and adequate safety respectively. The bonds will be listed on the Bombay, Bangalore and National Stock Exchanges.

Send this article to Friends by E-Mail

Stories in this Section
LIC Housing Fin private placement


Re range-bound; securities rally
Corpn Bank officers plan strike in March
Leasing body working on common business code
Cholamandalam experiment with franchisees pays off
RBI approves ADR/GDR re-issue
ICICI Bank record date for interim
PNB asset co back in black
Krishna Jala Nigam plans Rs 350-cr bond issue
ITI bond issue oversubscribed
FIs asked to submit immunity proposal


The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | The Sportstar | Frontline | Home |

Copyright 2002, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line