India's Jubilant Organosys to raise $35m in overseas bonds

07 May 2004 04:20  [Source: ICIS news]

SINGAPORE (CNI)--Leading Indian speciality chemical producer Jubilant Organosys Ltd is to raise $35m (Euro29.1m) by placing convertible bonds with overseas investors, the company said.

The funds will be used to finance the recently announced acquisition of two European pharmaceutical companies for Euro13.5m ($16.2m) and to finance the capital expenditure for the company’s expansion plans.

JOL will purchase an 80% equity stake in each of the unnamed companies, subject to due diligence and regulatory approvals. One of the European companies is engaged in marketing of drug formulations and the other is engaged in regulatory affair services, dossier development, formulation developing and licensing.

JOL has applied to list its unsecured and unrated five-year foreign currency convertible bonds (FCCB) issue on the Singapore Stock Exchange (SGX). The FCCB has a 15% conversion premium at Rs.818.23/share ($18.34/Euro15.23) compared with the closing price of Jubilant stock of Rs.711.50/share on 4 May 2004.

The FCCBs will be convertible into Rupee stock or global depository receipts (GDRs) at the option of the holder. An application has also been made to list the GDRs on the Luxemberg Stock Exchange.

ABN AMRO Rothschild was the sole bookrunner and global co-ordinator for this transaction.

By: James Dallmeyer
+65 6780 4359

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