1. A cumulative amount of USD 70 mn under External Commercial Borrowings comprising USD 30 mn from IFC, a member of the World Bank Group and USD 40 mn from Société De Promotion Et De Participation Pour La Coopération Économique (Proparco, a French development finance institution)
2. USD 10 mn under FCCB from IFC convertible into equity shares of the company at a premium of 40% to the floor price as per SEBI formula.
3. Preferential allotment of equity shares to IFC, Proparco and Mount Kellett upto an aggregated amount not exceeding USD 50 mn at Rs. 149.16 per share (a premium of 10% to the floor price as per SEBI formula).
4. Preferential allotment of equity shares and warrants to Promoter group upto an aggregated amount not exceeding USD 55 mn, in a combination of straight equity (USD 15mn) and warrants (USD 40mn), at a price of Rs. 193.74 per share, representing a premium of approximately 44% to the closing price of the equity shares as on June 18, 2012.
The decision of the Board is subject to approval of shareholders. Out of the above mentioned amount of USD 155 mn, while approximately USD 111 mn is proposed to be utilized for existing FCCB redemption (principal of USD 78.5 mn and balance as redemption premium), the balance would be utilized towards capex, and strengthening the balance sheet of the company. The components of the financing package are expected to close simultaneously before the FCCB redemption date.
About IFC: IFC, a member of the World Bank Group is the largest global development institution focused exclusively on the private sector. We help developing countries achieve sustainable growth by financing investment, providing advisory services to businesses and governments, and mobilizing capital in the international financial markets. In fiscal 2011, amid economic uncertainty across the globe, we helped our clients create jobs, strengthen environmental performance, and contribute to their local communities—
About Proparco: PROPARCO is a French development finance institution, a subsidiary of Agence Française de Développement (AFD). Its mission is to catalyze private investment in emerging and developing countries with the aim of supporting growth and sustainable development. PROPARCO finances investments that are economically viable, socially equitable, environmentally sustainable and financially profitable. PROPARCO is among the world’s leading bilateral development finance institutions. It invests on four continents encompassing the major emerging countries, including India, and the poorest countries, particularly in Africa, and has a high level of requirements in terms of social and environmental responsibility. For more information, visit www.proparco.fr
About Mount Kellett: Mount Kellett is a multi-strategy private investment firm focused on global value investing. The firm has over 100 employees with offices in New York, Dallas, Hong Kong, London, and Mumbai. The firm has in excess of $7 billion in assets under management.
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