Ashok Leyland raises $200 mn ECB loan

Ashok Leyland raises $200 mn ECB loan
PTI
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First Published: Wed, Mar 26 2008. 03 14 PM IST
Updated: Wed, Mar 26 2008. 03 14 PM IST
Chennai: Hinduja Group’s flagship company Ashok Leyland Ltd on Wednesday said it has recently concluded an External Commercial Borrowing (ECB) loan of $200 million.
The loans would partly fund its expansion and overseas investment plans, the company said in a statement today.
“The deal is significant for the company in many ways. Meant to meet the company’s funding requirements, the deal got successfully completed at a time when the global financial markets are in turmoil,” K Sridharan, Chief Financial Officer, Ashok Leyland said in the statement.
Secondly, it has been concluded at a very competitive rate, he added.
The statement said as per the RBI guidelines, companies can use the proceeds of the ECB only for meeting forex requirements for capital expenditure and other overseas investment purposes. Accordingly, the RBI has given the go-ahead to the company to proceed with the drawdown.
The funds would be drawn over the permitted period (corresponding to the next financial year) and Ashok Leyland would be taking necessary hedging measures to protect itself from the vagaries of the exchange markets, it said.
Company officials, however, remained tight-lipped on the rate of interest or maturity period and declined to provide any additional information about the funding.
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First Published: Wed, Mar 26 2008. 03 14 PM IST