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Journalism of Courage
Stop loans to LML: Piaggio
NEW DELHI: Piaggio has urged the financial institutions (FIs) not to disburse any further loans to LML for their future projects. Piaggio representatives in the country have told the FIs, particularly the lead institution — Industrial Finance Corporation of India (IFCI) to step in between the warring partners to resolve the issue. As part of the dialogue with the FIs, Piaggio has said "an amicable settlement to the issue should be thrashed out across the table between the partners so that the minority shareholders should not suffer". Sources said that the FIs should mediate between the two partners as a dispute is not conducive for the working of the company in the face of increasing competition in this sector.
Rights issue from Tata Finance
MUMBAI: Tata Finance Ltd, a leading NBFC promoted by Tata Industries Ltd, is launching a rights issue of cumulative convertible perference share (CCP) of Rs 100 each in the ratio of one CCP for 10 equity shares. The CCP willbe compulsorily converted into equity shares at the end of three years from the date of allotment. This will be at a premium of Rs 25 or the average price of the equity shares quoted on the Stock Exchange, Mumbai, during the last six months prior to conversion, whichever is lower, subject to a minimum of Rs 10. Each CCP of Rs 100 carried a coupon rate of 10 per cent.
BHF-Bank to fund Dholpur project
MUMBAI: BHF-Bank AG has agreed to arrange on a fully underwritten basis the foreign currency financing requirements of $ 313 million for RPG group’s 702.7 mw combined cycle Dholpur power project. BHF’s chief representative in India V V Meghani said that foreign currency financing for the $ 750 million project in Rajasthan would be at a Libor plus floating rate.
Meghani said financing would be at a very competitive rate, at a time when no long-term borrowings are happening in the foreign currency markets.He, however, refused to reveal for now the spread over Libor at which the financing would bearranged. RPG Dholpur Power hopes to complete financial closure by the second quarter of 1999.
