New Delhi: Petronet LNG Ltd, India's biggest liquefied natural gas importer, will raise Rs 1,000 crore through bonds issue this fiscal mostly to pay off its existing debt.
Company is seeking shareholders' approval "to raise Rs 1,000 crore through issuance of secured/unsecured non convertible debentures through private placement in one or more tranches during the financial year ending March 31, 2016."
"The funds will be used to refinance the existing debt and/or to meet the capex requirement of the company," Petronet said in a notice to shareholders ahead of its annual general meeting (AGM) on September 24.
The money raised through the bonds issue will be repayable in a maximum of 10 years.
Petronet had total borrowings of Rs 2,373.81 crore as on March 31, 2015.
In 2014-15 fiscal, it had refinanced a part of its rupee term loans by substituting it with low cost rupee bonds in the Indian markets for an amount of Rs 1,000 crore.
Also, the company has proposed to raise cap on foreign portfolio investors or FII shareholding in the company from 24 percent to 30 percent of paid up capital.
Current, equity share capital of the company is Rs 750 crore out of which 50 percent is being held by our four promoters -- state-owned GAIL, Indian Oil, Bharat Petroleum and ONGC. Another 10 percent is held by GdF of France while the remaining 40 percent is with public including FIIs.
"Present holding of FIIs/FPIs in PLL is more than 23 percent which may reach above the threshold limit of 24 percent of paid up capital in time to come. The limit of 24 percent may be increased up to sectoral cap / statutory ceiling by passing a resolution by the Board and followed by passing a special resolution to that effect by the shareholders in the General Meeting," the company said in the notice.
Petronet said raising the limit for FIIs shareholding in the company to 30 percent "will improve the liquidity in the market for PLL's shares."
The company plans to complete expansion of its Dahej LNG import facility in Gujarat to 15 million tonnes per annum from current 10 million tonnes by end of 2016.
It is further looking at expansion of Dahej terminal to 17.5 million tonnes and "is in process of finalising business model for the same," Petronet said in its annual report adding detailed feasibility report has been prepared and Front End Engineering design is under progress.
On its planned 5 million tonnes a year LNG import terminal at Gangavaram on the east coast, Petronet said many international LNG suppliers have shown interest to participate in this project.
The company is in "the process to have a robust commercial structure in place before seeking approval of the Board to committing funds to this project," the report said.
