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News Round UP: R-Power to Raise Rs 11,500 Crore via Syndicated Loans

By TEAM VCC

  • 25 Dec 2008

R-Power to Raise Rs 11,500 Crore via Syndicated Loans - Anil Ambani’s Reliance Power will raise around Rs 11,500 crore via syndicated loans, and $500 million-$600 million (Rs 2,400-2,900 crore) through external commercial borrowings. The funds are being raised to finance the company’s upcoming ultra mega power project at Sasan in Gujarat. The fund raising is expected to be completed by February. Out of Rs 20,000 crore raised for setting up the 4,000 MW power unit Rs 14,500 crore would be raised through debt. (Business Standard)

Uttarakhand Infrastructure Invites Bids for 10 Hydel Projects - The Uttarakhand Infrastructure Project Company (UIPC) Pvt. Ltd is planning to invite bids for development of ten hydel projects with a potential of 70.2 Mw in Uttarakhand. The UIPC, a joint venture between IL&FS and the state government, has already submitted a detail plan for approval in this regard. According to sources, an investment of Rs 550 to Rs 600 is expected in these projects. (Business Standard)

IRFC Raises $100 Million via ECB - The Indian Railway Finance Corporation (IRFC), the financing arm of Indian Railways, has raised $100 million (around Rs 500 crore) as external commercial borrowings (ECBs) at 145 basis points above the London Inter Bank Offered Rate (Libor). IRFC is th first Indian firm to raise funds from the foreign market after the Lehman Brother Holding collapsed in September. The loan has been raised from a consortium comprising Bank of Tokyo and Mitsubishi UFJ at six-months Libor plus a spread of 145 basis points. (Business Standard)

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LIC Hikes Stake in HDFC Bank - Life Insurance Corporation (LIC) has increased its stake in HDFC bank to more than 5% by acquiring shares from the open market.  LIC bought HDFC Bank’s 1,60,000 shares from the open market, increasing its stake in the Bank from 4.97% to 5.01%. LIC’s current equity investments presently stand at over Rs 23,000 crore for the financial year. A large part of its investments is allocated towards banks and financial services firms. (Business Standard)

R-ADAG Plans to Tap Global Remittance Business - Reliance ADAG is planning to buy money transfer and currency exchange companies in the US, UK, EU and Canada to tap into the global remittance business. The group, backed Wall Street Finance (WSF), may infuse more funds into WSF to finance the acquisitions. The board approved the company’s plan to purchase one or more of these companies, including a New York-based company with a licence to operate in four US states and a money transfer and currency exchange firm in the UK. (The Economic Times)

DCB to Shut Most of its Retail Asset Portfolios - Mumbai based private sector bank, DCB (Development Credit Bank) is planning to close down most of its retail asset portfolio due to the current market conditions. The Bank has also stopped the commercial vehicle loans and construction equipment business. Reports suggest that the bank is looking at cutting down on the mortgage portfolio, too. The bank has also started laying off employees in various departments such as personal loan and secured retail asset to reduce costs. (The Economic Times)

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Maruti to Cut Down Production - Car manufacturing giant Maruti might cut production in December if the market conditions do not improve. The company had cut production by nearly 6.3% in November. The company’s plants in Gurgaon and Manesar are presently undergoing maintenance shut down. Maruti’s sales have gone down by -3.5% up to December. (The Economic Times)

Dawnay, Day Hotels’ India MD Hikes Stake in the Firm - Mandeep S Lamba, founder and Managing Director of Dawnay, Day Hotels’ (DDH) India operations, has hiked his stake in the hotel management firm. The firm is now owned by Duet India Hotels. Reports suggest that Lamba, along with the management team, earlier held 15% in the hotel management company and has now doubled it to 30%. The remaining 70% is held by Duet. Duet recently acquired DDH in a deal worth close to Rs 200 crore but the management company continues as a joint venture. (DNA)

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