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Ultratech Cement board approves up to Rs 3,000 crore fund raising plans

Ultratech Cement board approves up to Rs 3,000 crore fund raising plans

Ultratech Cement said the proceeds from the issuance will be used to refinance existing rupee debt, with the remainder reserved for regular ongoing capital expenditure requirements and general corporate purposes.

Board of Directors of Ultratech Cement board has approved a proposal of raising funds for an aggregated amount of up to Rs 3,000 crore through issuance of US dollar-denominated bonds.

“The Board of Directors of the Company (“Board”) at its meeting held on 23rd January, 2021 considered and evaluated a proposal for raising of funds through permissible mode(s) and accordingly, approved raising of funds for an aggregate amount not exceeding Rs 3,000 crores, subject to applicable regulatory approvals and market conditions, by way of issue of any instruments or securities in India and/or overseas,” the company said in a late evening regulatory filing on Wednesday.

Further, the Board had also authorised the Finance Committee of the Board of Directors to finalise the manner of raising the funds and decide on all matters and transactions relating to the same, including but not limited to the finalisation and approval of detailed terms and conditions of issue, size, pricing and timing of the transaction.

“The Finance Committee, in terms of the aforesaid authority, at its meeting held today, approved raising funds by way of issuance of foreign currency (US$) denominated bonds (“Notes”) aggregating up to US$ 400 million, corresponding to Rs.3,000 crores, to be offered and sold within the United States to qualified institutional buyers in reliance on Rule 144A of the United States Securities Act of 1933, as amended (“US Securities Act”) and outside the United States in offshore transactions as defined in and with reliance on Regulation S under the US Securities Act (“Offering”), in one or more tranches,” the release added.

Ultratech Cement said the proceeds from the issuance will be used to refinance existing rupee debt, with the remainder reserved for regular ongoing capital expenditure requirements and general corporate purposes.

The company said it is contemplating listing of the Notes on the Singapore Stock Exchange, subject to market conditions




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