Nalco to raise 250 mn dlr by August
State-run aluminium producer, Nalco, will tap the overseas market to raise USD 250-million by August-end for its ambitious capacity expansion plan.
By PTI |
MUMBAI: State-run aluminium producer, Nalco, will tap the overseas market to raise USD 250-million by August-end for its ambitious capacity expansion plan.
About 17 banks and merchant bankers including SBI, ICICI and Citi have responded to the expression of interest invited by Nalco to raise over $250-million through the External Commercial Borrowings (ECB) route, a senior company official told PTI here.
Nalco is undertaking a major expansion, including ramping up of its alumina capacity at the cost of Rs 5,040 crore.
ABN Amro, HSBC Bank, Standard Chartered Bank and UTI are among the bidders. Nalco expects to receive bids in the range of 65-90 basis points above Libor.
"The information supplied with the EOI are under scrutiny and a short-list would be finalised by the end of next week. Thereafter, the short-listed banks/merchant bankers would be invited to submit competitive financial quotes," the official said.
The final decision would be taken on receipt of competitive qoutes by end-August, he said.
In between, Nalco has placed orders on foreign equipment suppliers for its expansion project and the deliveries are due in 2008.
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