Orchid Chemicals & Pharmaceuticals (Orchid), a Chennai-based global pharma major, has received sanction for $100 million by way of external commercial borrowings (ECBs) from the banking system to redeem the outstanding foreign currency convertible bonds (FCCBs) of $117 million, along with the yield-to-maturity when they fall due in February 2012.
The ECB sanction that Orchid has received, coupled with the company’s internal accruals will enable it to comfortably redeem the outstanding FCCBs on the due date. With over 85% of Orchid's sales being exports billed in US dollar, the company has a natural hedge against currency fluctuations.
Orchid is a pharmaceutical company engaged in development and manufacture of active pharmaceutical ingredients (APIs) and finished dosage forms. It is also engaged in research of new drugs. The company was incorporated in the year 1992 as a 100% export-oriented unit.
