Sical raises $75 m in FCCBs

Sical Logistics Ltd announced the successful closure of its offering to raise $75 million (about Rs 334 crore) in foreign currency convertible bonds (FCCBs) to fund its expansion.

The funds will be used for projects relating to operating container trainers, offshore logistics, trucking and port equipment and infrastructure.

A company statement said that the bonds have been listed on the Singapore Stock Exchange and will mature in five years and one day.

"The fast growing Indian bulk and containerised logistics space is an exciting opportunity. The funds raised from the FCCB issue will help us quickly leverage Sical's current leadership position and customer relationships in integrated multi-modal logistics," Ashwin Muthiah, vice-chairman, Sical, said in the statement.

Deutsche Bank was the sole underwriter and bookrunner to the offering. The offering was launched on March 15, 2006.

Each $1,000 bond is convertible to 78.8152 shares of Sical Logistics, the conversion price of each being Rs 563.55, a premium of 30 per cent over the close price on the BSE (Bombay Stock Exchange) of Rs 433.50, on March 14, 2006.

The company has the option to exercise a call option for the bonds after April 17, 2007, provided a 30 per cent premium has been achieved over the accreted conversion price as of that date. The bonds carry a zero coupon with a yield-to-maturity of 6.32 per cent per annum calculated on a semi-annual basis.