MAN Industries repays FCCBs worth $64 mn
The company does not have any outstanding FCCBs, neither it has any liability after the redemption of the bonds
Pipe manufacturer MAN Industries today said it has repaid loans worth $64.35 million (about Rs 360 crore) that were raised through foreign currency convertible bonds in 2007.
"...(MAN) has redeemed outstanding zero coupon foreign currency convertible bonds (FCCBs) of $64.35 million (including premium). The bonds were issued in the year 2007 and redeemed on due date," the company said in a release.
The company added that it does not have any outstanding FCCBs, neither it has any liability after the redemption of the bonds.
"We are very happy that despite of global turmoil and uncertainty in the financial markets, we have been able to maintain our 25 years track record of timely payment of liabilities," MAN Industries Chairman R C Mansukhani said.
The Mumbai-based firm is a leading manufacturer of SAW (submerged arc welded) pipes and coating systems for high- pressure oil and gas applications with a production capacity of nearly one million tonnes per annum.
FCCBs are a financing option, through which companies raises money through issuing bonds in a foreign currency for a fixed period.
At the time of maturity, either the borrower has to repay the raised money or the bondholder has the option to convert it into equity shares of the concerned firm at a price fixed at the time of issue of bonds.
According to a February report by rating agency Fitch, FCCBs worth $7 billion are due for redemption during the current year as many Indian firms had gone for cheaper dollar loans in 2007 to fund their expansion programmes.
Shares of MAN Industries were being traded at Rs 96.10 apiece on the BSE at 1440 hours, down 1.18% from the previous close.