×
Home Companies Industry Politics Money Opinion LoungeMultimedia Science Education Sports TechnologyConsumerSpecialsMint on Sunday
×

Shipping Corp to raise over Rs5k cr in next 2 years via ECBs

Shipping Corp to raise over Rs5k cr in next 2 years via ECBs
PTI
Comment E-mail Print Share
First Published: Tue, Nov 30 2010. 06 37 PM IST
Updated: Tue, Nov 30 2010. 06 37 PM IST
Ahmedabad: The Shipping Corporation of India (SCI) on Tuesday said it will take external commercial borrowing (ECB) route to raise over Rs5,000 crore in the next two years to finance its fleet expansion programme.
SCI, expects to raise Rs1,184 crore from the follow on public offer (FPO) which opened for subscription on Tuesday, in which government is divesting 10% stake.
The project cost for 30 vessels ordered is Rs7,000 crore, while proceeds from the FPO will take care of fund requirement to the extent of about 20%. The balance would be raised through the ECB route, SCI director finance BK Mandal told PTI.
“The loan raising through the ECB route shall be over next two years,” he said.
The largest shipping company of India has total loan of close to Rs3,700 crore, of which 92% was raised through the ECB route.
“ECB, is linked to London Inter Bank Offer Rate (Libor), a global benchmark interest rate, on which the international lenders (banks) charge a margin varying from 22 basis points to 200 basis points,” Mandal said.
“We raised loans through ECB at different times and at different margins so the effective rate of interest to us is as low as 2% per annum,” he claimed.
SCI had raised loan of $260 million through the ECB route last year, he said.
The company has placed order for 30 ships for now. After the FPO, order for 15 more will be placed, he said.
Comment E-mail Print Share
First Published: Tue, Nov 30 2010. 06 37 PM IST