ACC raises $100m

ACC raises $100m
Published: 10 March 2004

Associated Cement Companies Ltd (ACC) has raised US$100m by issuing foreign currency convertible bonds (FCCB) and global depository receipts (GDR) to international investors to fund acquisition of Bargarh Cement Ltd in Orissa, modernisation of another plant and capital expenditure. The cement company has raised US$60m through FCCBs priced at 35 per cent premium to Monday’s closing price of Rs 277.35 on Bombay Stock Exchange, an ACC press release issued said, quoting director and company secretary PK Sinor. The convertible bonds having maturity of five year and one day carries one per cent coupon rate. These bonds would be listed on the London Stock Exchange and the company could exercise call option at a conversion price of Rs 374.42 after three years, he said. The company has also raised $40 million via GDRs, which were issued at a price of Rs 280.05, a one per cent premium to closing price of Rs 277.35. The receipts would be listed on the London stock exchange. ACC plans to use the net proceeds of issue to fund acquisition of Bargarh Cement Ltd, the modernisation of its Chaibasa plant along with setting up a captive power plant and other capital expenditure programmes.