Financial Daily from THE HINDU group of publications
Wednesday, Dec 07, 2005


Group Sites

Corporate - Corporate Bonds
Agri-Biz & Commodities - Agricultural Institutions

FCI bond issue opens today

Mamuni Das

New Delhi, Dec. 6

THE Food Corporation of India (FCI) plans to raise up to Rs 5,000 crore through issue of bonds to restructure its debt. The basic bond issue of Rs 1,000 crore with a greenshoe option will open on Wednesday.

If FCI raises the entire Rs 5,000 crore, it will save about Rs 90 crore per annum.

"We have not specified the greenshoe option, but we have Government clearance and AAA guarantee rating by Crisil (Credit Rating Information Services of India Ltd) and Icra (Investment Information and Credit Rating Agency) for Rs 5,000 crore," said Mr R.P. Vaishnaw, Chief General Manager, FCI.

The bonds will be privately placed with institutional investors and are of two terms — five years and ten years. The coupon rate of the five-year bonds is 7.28 per cent where that of the ten-year bonds is 7.58 per cent, he said.

There are eight arrangers for the issue that include AK Capital Services, SBI Capital, UTI Bank, ICICI Securities, Darashaw and Company, Alliance Securities and Centrum Capital.

At present, FCI has a loan in the range of Rs 28,000-Rs 30,000 crore from an SBI-led consortium of 61 banks. The cost of this loan is nine per cent per annum.

Earlier, this year, FCI had raised Rs 5,000 crore through bonds issuance. The move resulted in savings of over Rs 90 crore per annum to the corporation.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

More Stories on : Corporate Bonds | Agricultural Institutions

Stories in this Section
SAIL to pump in Rs 348 cr to modernise Rourkela Steel

Nestle India to pay second interim of Rs 18 per share
Maruti to recall 2,200 Versas
Suzlon bags China, Korea orders
Ramky group bags orders for industrial parks in several States
Carraro group to start production at Turbo Gears
MSC Power to set up solar-wind plant near Pune
Nagarjuna Construction bags National Games contract
36 firms sought RBI nod in Oct to raise overseas funds
ABB India bags Helen Keller Award
NFCL bags FAI award
Corporates under watch for tax evasion
FCI bond issue opens today
Matrix Labs to pick majority stake in Concord Biotech
Marriott's business hotel to open in Chennai
Jindal Stainless plans to enter CRGO segment
Metso Minerals plans expansion
BV Bio, BAIF in pact for livestock management
Shell yet to find partner for Hazira LNG terminal
Mukand to reduce debt-equity ratio after land sale
`Quick decisions and quick action made LG a top brand'
Reliance plans underground coal gasification projects
Punj Lloyd plans to expand engg services — To foray into hydel power, ports, airports
NMDC Director dead

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

Copyright 2005, 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