Petronet LNG Ltd, India’s biggest liquefied natural gas importer, will raise Rs 1,000 crore through bonds issue this fiscal mostly to pay off its existing debt.
Petronet, the biggest liquefied natural gas importer in the country will raise 1000 crore through bond issues in this financial year. Most of the funds will be used to pay off the current debts and to fulfill capex need of the company. Company is waiting for shareholders approval to raise 1000 crore by issuing secured/unsecured non- convertible debentures during this financial year.. Petronet has already given a prior notice to its shareholders. Money raised through these bonds will be repayable in a maximum of 10 years. Company will hold AGM on 24th September.
The total borrowings of the company, as on March 31, 2015 is 2373.81 crore.
The company has also suggested raising cap on foreign portfolio investors or FII shareholding in the company from 24 per cent to 30 per cent of paid up capital.
Company’s current equity share capital is Rs. 750 crore out of which 50 percent is held by Indian Oil BSE -1.12 %, Bharat Petroleum, ONGC and state run GAILBSE 0.65 %. France’s GDF is holding 10 percent and remaining 40 percent is with public and FIIs.
The company stated that, there present holding of FIIs/FPIs in PLL is more than 23 percent which might go above the threshold limit of 24 percent of paid up capital in future. The company could raise the limit of 24 percent by passing a resolution by the board, followed by passing a special resolution to that effect by the shareholders in the General meeting. Raising the limit for FIIs shareholding in the company to 30 percent will improve the company’s liquidity position in the market.
LNG is planning to complete expansion of Dahej LNG import facility in Gujarat from 10 million tonnes to 15 million tonnes by year end 2016.
Further it is seeking to expand Dahej terminal to 17.5 million tonnes and is finalizing a business model to achieve this.
Petronet said that many international LNG suppliers have shown interest to participate in its planned 5 million tonnes a year LNG import terminal at Gangavaram on the east coast.
The report also stated that the company is process to have a robust commercial structure in place before seeking approval of the Board to committing funds to this project.
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