Gujarat NRE Coke to raise up to $20 million through issuance of FCCBs

Gujarat NRE Coke is planning to raise up to $20 million through issuance of Foreign Currency Convertible Bonds (FCCBs). The company will launch on October 23, 2012 an issue of $15 million direct, unsubordinated, unconditional (subject to the conditions of the negative pledge) and unsecured convertible bonds subject to an over allocation of $5 million, convertible into ordinary, equity shares of the company quoted in Indian rupees.

Accordingly, the issue will be launched by the First International Group Plc, lead manager and book runner for the issue. The floor price for the conversion of the bonds will be determined in accordance with the pricing formula as prescribed by the Ministry of Finance, Government of India.

Gujarat NRE Coke is the only Indian company with coking coal mines in Australia having over 650 million tones of Coking Coal resources with excellent coking properties. The coal mines are owned through its subsidiary- Gujarat NRE Coking Coal, listed on the ASX.