KBJNL raises Rs 6,200 crore from markets for irrigation project
By Our Markets Bureau | 13 Aug 2003
Bangalore: Krishna Bhagya Jala Nigam Ltd (KBJNL) is executing the Upper Krishna Project in the Krishna river valley of Karnataka as a multipurpose irrigation project. For implementing this project, KBJNL had successfully raised over Rs 6, 200 crore from the Indian capital markets and has been regularly servicing its debt obligations.
KBJNL has an excellent track record of timely payments of interest and principal on due dates. This track record, coupled with the good performance of KBJNL in the light of the fiscal reforms initiated by the state government of Karnataka, enables KBJNL to enjoy a special market.
KBJNL had made various bond issues through private placements/public issues from time to time, keeping in view of the market scenario. During the last three years, interest rates have fallen drastically because of ample liquidity, comfortable reserve position and low credit growth, a company press release said.
KBJNL has always endeavoured to bring in the best management practices in its functioning, the release added. Cost control and cost reduction in all areas is one such critical issue receiving continuous attention by KBJNL at all levels. As part of this exercise, KBJNL has embarked on a major debt restructure exercise keeping in view the present market condition, so that the cost of funds is minimised.
As a sequel to this exercise, KBJNL has exercised call option on its Series-VIIA Bonds raised for a tenure of seven years with a put/call option at the end of the fifth year raised during the year 1998-99.
The call option was due on 31 July 2003 and was exercised through a rollover of Series-VIIA Bonds to Series-XIIA Bonds to the extent of Rs 70.08 crore and the remaining through loans from banks at coupons ranging from 8.50 per cent per annum to 9.38 per cent per annum annualised.
KBJNL proudly announces that by exercising call option on Series-VIIA Bonds, the company is able to save Rs 27 crore. With this the company is so far able to save Rs 91 crore by exercising the call option, the release said.
The company once again thanks the investors, banks and financial institutions and all the intermediaries for their continued support to KBJNL's mission of "tapping water for prosperity for all."