Sterlite Industries is palnning to raise Rs 5-billion debt in the domestic and international markets to meet future expenses. Anil Agarwal-promoted Sterlite has tied up 50 million dollars of foreign currency loan (Rs 2.45 billion) through a syndicate of banks led by DBS, Singapore. Company finance director Tarun Jain said the money has not been drawn down. "We will use the amount partly for converting our short-term debt into long term loans," he added as the company is planning to restructure its finances. According to reports, Sterlite will raise another Rs 2.6 billion of secured non-convertible debentures (NCDs) of 5-year tenor. A "AA" rating has been obtained from Crisil signifying high safety of timely payment of interest and principal. Sterlite has made major payouts in the past one year. It paid Rs 5.51 billion for public sector Balco and another Rs 4.45 billion for Hindustan Zinc (HZL). It faces such huge payouts in future as well. The company targeted a total fund requirement of 800m dollars of both debt and equity over the next three years in a recent roadshow for foreign investors. Future commitments include a Rs 50-billion expansion plan for Balco and a Rs 4.20-billion outgo for the ongoing buy back.
NSTL
