Indian energy project to get $395 mn in private placement

Indian energy project to get $395 mn in private placement
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First Published: Mon, May 21 2007. 12 36 PM IST
Updated: Mon, May 21 2007. 12 36 PM IST
PTI
Dubai: Bahrain-based Gulf Finance House (GFH), the promoters of the Energy City in India, have started wooing investors for the project with the launch of its $395 million (Rs1,603 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 Company.
Energy City India is the second Energy City in a series of energy focused business clusters planned across the Middle East and Asia. Energy City India will occupy a prime-site of 600 acres in New Mumbai, in Maharashtra.
The project will be located within a few kilometers of New Mumbai’s upcoming new 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, which is 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 $395 million 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 ra te of over 9.2% per annum.
The private placement initiative, which is currently underway, 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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First Published: Mon, May 21 2007. 12 36 PM IST
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