GAIL to raise 150 mn through ECB

GAIL would raise 150 million through ECB route and is inviting bids from a panel that includes ABN Amro, StanChart, Citibank, Deutsche Bank, Credit Lyonnais and others. The company proposes to borrow 100 million with a greenshow option to retain additional 50 million. The ECB would be used to finance capital expenditure.

The ECB would be part of the fund raising programme for GAIL8217;s Rs 4,000 crore investment in laying pipelines and expanding capacity in this fiscal. 8220;We have a capital expenditure outlay of Rs 4,000 crore in 2004-05 of which Rs 2,400 crore would be raised as loans,8221; GAIL8217;s director finance J K Jain told the media. According to GAIL8217;s CMD Proshanto Banerjee, 8220;our internal resource generation is about Rs 1,500 crore annually.8221;

This fiscal, GAIL would raise Rs 500 crore through bonds and an equal amount through term loans from banks.

GAIL has already drawn Rs 500 crore loan from Bank of India and raised Rs 300 crore through a bonds issue in March. It will draw another Rs 200 crore from SBI in June.