RIDING ON OWN GUARANTEE, BALCO SECURES $15 M ECB
Article Abstract:
Bharat Aluminium Company Limited (BALCO) has secured a $15 million external commercial borrowing (ECB) from a consortium of European banks. The ECB which has been raised without any bank guarantee, will have a coupon rate of 6.52 percent (above the Libor). The proceeds of the loan will be utilised to part finance its 40,000 tonnes per annum cold rolling mill from FATA Hunter of Italy of FATA Group SPA. The Rs157.5 crore cold rolling mill begin its operation in the year 2000 at Korba in Madhya Pradesh. The loan will also be utilised to the company's Rs1,000 crore modernisation plan. Balco plans to export 25 percent of its output by 2001 AD. The initial export will be five percent this year. (gs)
Comment:
Secures $15 mil external commercial borrowing from consortium of European banks
Publication Name: Economic Times
Subject: Business, international
ISSN: 0013-0389
Year: 1998
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PULSE--MORE TO BE DONE
Article Abstract:
Public sector National Aluminium Company (NALCO) has obtained approval for its capital restructuring plan from the Indian Government. Under the plan the company proposes to reduce its Rs1,288.62 crore equity by 50 percent. The 50 percent of its equity will be converted into debt at 14.5 percent. With this Nalco's annual interest outflow will be around Rs93 crore resulting in tax savings of around Rs28 crore. NALCO has posted 31 percent drop in sales turnover in the third quarter of 1998- 99. Its net profit declined by 71 percent while its operating margins dropped to almost 16 percent. (gs)(psr)
Comment:
Public sector National Aluminium Company (NALCO) has obtained approval for its capital restructuring plan from the Indian Government.
Publication Name: Economic Times
Subject: Business, international
ISSN: 0013-0389
Year: 1999
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CAN IT, THE DUTIES TOO
Article Abstract:
India cannot become a leading producer of aluminium even if domestic producers source cutting-edge technology unless there are much lower tariff barriers. Analysts feel that reducing duties on aluminium will increase competition and improve efficiency. The special additional duty, which has raised tariffs as high as 43 percent, has not helped domestic producers gain the competitive edge. The prospects of aluminium exports are very good as India has the best bauxite deposits. Most of the domestic producers are planning large scale value addition projects. (khr)
Comment:
India cannot become a leading producer of aluminium even if domestic producers source cutting-edge technology unless there are much lower tariff barriers.
Publication Name: Economic Times
Subject: Business, international
ISSN: 0013-0389
Year: 1999
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