GAIL to raise Rs2000 cr for expansion in FY10

GAIL to raise Rs2000 cr for expansion in FY10
PTI
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First Published: Tue, Jul 07 2009. 05 11 PM IST
Updated: Tue, Jul 07 2009. 05 11 PM IST
New Delhi: State gas utility GAIL India Ltd plans to raise around Rs2,000 crore during the current fiscal year to part fund its expansion plans.
“We may borrow Rs2,000 crore through a mix of debt from Oil Industry Development Board (OIDB), bonds and term loans,” GAIL director (finance) R K Goel told reporters here.
GAIL has planned capital expenditure of about Rs3,800 crore in 2009-10 fiscal, most of which would be for laying new gas transportation pipelines. The entire capital expenditure (capex) is to be met either through internal resources or borrowings.
Goel said GAIL may raise Rs500 crore through a bonds issue. The bonds issue would also have a greenshoe option of Rs200 crore.
About Rs700 crore would be raised from OIDB and the remaining would be borrowed from banks as term loan, he said.
The borrowings may happen in November-December, he said, adding over the next three years the company would need to borrow about Rs6000 crore.
GAIL’s debt-equity ratio, which has “almost zero” debt, may rise to 1:1 in three years, Goel said.
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First Published: Tue, Jul 07 2009. 05 11 PM IST
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