Glenmark plans to raise up to $200 million via FCCBs

MUMBAI: Drug-maker Glenmark Pharmaceutical is raising up to $200 million ( Rs 1,340 crore) in foreign currency convertible bonds. The issue launched form the Singapore Stock Exchange on Tuesday raised $150 million until press time, indicating revival of interest in the instrument after a raft of default drove investors away in 2008.

International Finance Corp, a member of the World Bank group, has come in as anchor investor, said a person close to the matter. The issue ends a nearly four-year drought of fundraising through FCCB by any Indian pharmaceutical company, the person added.

IFC is likely to invest up to Rs 500 crore in the issue and will stay invested for a long term, said another person. Glenmark is raising the fund to retire a part of its existing debt and also mobilise money for fresh capex plans. The company has $450 million of debt. A Glenmark spokesperson declined to comment on the matter.

Offshore fund houses across Asia, Europe and US have so far invested in the bonds. JP Morgan is the sole investment banker.