Neyveli Lignite to raise Rs1,850 crore capital

02 Jan 2009

Neyveli Lignite Corporation plans to raise up to Rs1,850 crore by way of private placement of secured non-convertible taxable bonds for Rs500 crore with an option to retain oversubscription of Rs100 crore and through various other means, the company said in a statement.

The board of directors of Neyveli Lignite Corporation, at its meeting held on 26 December, also approved the issue of debt worth Rs1,250 crore.

The company will use the funds so raised to meet the balance capital expenditure requirements for the projects currently under implementation, including Mine-II expansion linked to TPS-II expansion at Neyveli and mine-cum-thermal project at Barsingsar.

The balance debt portion of Rs1,250 crore will be raised by way of rupee term loan/external commercial borrowings/issue of bonds, in one or more tranches.