Friday, February 21, 2014

Overwhelming response to Ennore Port’s Rs. 500-cr. Bond

Source: http://www.sagarsandesh.com/news/overwhelming-response-to-ennore-ports-rs-500-cr-bond/

With the view to smoothening execution of its ambitious expansion plans, Ennore Port, country’s only Corporate Major Port controlled by the Union Government and located in Tamil Nadu, hit the market with a tax-free bond issue of face value Rs 1, 000 each to raise up to Rs. 500 crores.
“Within two days since the offer has began Ennore Port has pooled in about Rs. 200 crores and we are hopeful that we could touch the total expectation before the deadline – March 14,” a senior port official told Sagar Sandesh.
According to official sources, the port is offering a coupon rate of 8.36% p.a. for 10 years, 8.75% p.a. for 15 years and 8.75% p.a for 20 years for Qualified institutional buyers, corporate and high networth Individuals.
For retail individual investors, the coupon rate would be 8.61% p.a. for 10 years and 9% p.a. for 15-20 years, an official of the port added.
The funds raised through this issue will primarily be used for capital dredging projects, augmenting rail and road connectivity to the port and construction of third coal berth for captive use of Tamil Nadu Generation and Distribution Corporation Ltd (TANGEDCO).
It may be worth recalled here that the port plans to double its capacity to 65 million tonnes over the next few years. As a next plan to achieve the capacity augmentation project, the port has decided to award the last of the four expansion projects, envisaging an investment of Rs. 150 crores to build three million tonne per annum multi-cargo berth, to the lone bidder by the end of February.
According to Mr. M. A. Bhaskarachar, CMD of Ennore Port, it has a capacity to do 30 mt at present and has well-analyzed projects to add 35 mt more in the next few years.

UPDATE: Rs. 210 crores as on Feb 21, 2014 / 10.45 am

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