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Tata Chem to raise $375 mn via bonds,loans to expand

Tata Chem to raise $375 mn via bonds,loans to expand
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First Published: Mon, May 23 2011. 05 48 PM IST
Updated: Mon, May 23 2011. 05 48 PM IST
Mumbai: The US Unit of Tata Chemicals plans to raise $375 million via bonds and term loans by the middle of July to support various expansion projects of the company, a top executive said on Monday.
Tata Chemicals is also looking to raise $145 million via foreign currency loans to support its expansion plan at Gabon in Africa, P.K. Ghose, chief financial officer, told a news conference.
“Financial markets are at their best at this moment (for fund raising)...and this is for various projects of the company,” Ghose said.
The company’s net debt as on 31 March stood at about Rs 4,400 crore, he said.
The company had agreed to acquire 25.1% stake in 1.3 million tonnes per annum fertliser unit in Gabon for $290 million in April this year .
Half of the $290 million would be funded by internal resources and the rest would come via foreign currency loans that the firm plans to raise, Ghose said.
Earlier in the day, the firm reported a 14 percent rise in Jan-March consolidated net profit to Rs 146 crore on net sales of Rs 2,658 crore.
“The fertiliser business is seen under pricing pressure due to lower subsidy and higher input costs in FY12,” managing director R Mukundan said.
The demand for the fertiliser sector remains robust in the current fiscal, Mukundan added without giving any projection.
Tata Chemicals expects its soda ash business to grow 5% while sodium bicarbonate sales sales are seen growing 14 percent in FY12, the company said in a separate statement.
Demand outlook in India, China and Latin America remains robust, it added.
Its shares closed down 3.04% at Rs 351.05 in a Mumbai market that closed down 1.82%.
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First Published: Mon, May 23 2011. 05 48 PM IST