BackGulf Finance seeks to raise $395 mn for India project
Gulf Finance seeks to raise $395 mn for India project
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Dubai: Bahrain-based Gulf Finance House (GFH), the promoter of the Energy City project in India, has started wooing investors for the project with the launch of its $395 million (Rs1,394 crore) private placement to raise the equity required to fund the development. The investment is expected to yield a total return of at least 75% over three years. The equity issue is being underwritten by Kuwait Investment Co (KIC).
Energy City India is the second Energy City in a series of energy-focused business clusters planned across West Asia and Asia. Energy City India will occupy a prime site of 600 acres at New Mumbai in Maharashtra.
The project will be located within a few kilometres from New Mumbai’s upcoming international airport, which upon completion will be both the largest and busiest in Asia. The project site is also located along the Mumbai-Pune expressway, being developed by the government as a key business corridor.
The Energy City cluster concept provides a complete business infrastructure to both local and foreign oil and gas producers, as well as downstream refiners and producers, and businesses involved in shipping, energy trading and support services.
Esam Janahi, chief executive officer and board member of GFH, said in a statement that the Energy City India private placement offers regional investors with an opportunity to participate in the tremendous prospects being offered by the Indian economy, which is growing at a rate of over 9.2% per annum.
The private placement initiative, which is currently under way, is only open to institutional investors, and has a minimum subscription level of $250,000, with subsequent investments in multiples of $50,000.
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