Gayatri Projects announces the Launch of JPY 3,075 million ZCCBs

Gayatri Projects Ltd, on June 29, 2007 has announced the launch of JPY 3,075 million direct, unsubordinated, unconditional and (subject to the conditions of the negative pledge) unsecured zero coupon convertible bonds due 2012 ("Bonds"). Given a favorable credit and interest rate environment, the Company has decided to issue the Bonds for (i) capital expenditure and investment in infrastructure projects in accordance with applicable law, (ii) international acquisitions, and (iii) any other use as may be permitted under applicable law or regulations, from time to time. The Bonds will be convertible into ordinary shares of the Company, quoted in Indian Rupees.

The five year zero coupon Bonds have a yield to maturity of 3.75% per annum (calculated on a semi-annual basis), and the conversion price is expected to be set at a premium of 25% to the volume weighted average price of the ordinary shares of the Company on the Bombay Stock Exchange Ltd ("BSE") on the 27th and 28th of June. The Bonds will be issued at par and redeemed 120.414% of par on maturity. The Bonds are expected to price on June 29, 2007 and closing is expected on or about July 31, 2007.

Application will be made for the Bonds to be listed on the Singapore Exchange Securities Trading Ltd and for in-principle approval for the shares to be issued upon conversion of the Bonds to be listed on the BSE. The Issuer has convened a meeting of its shareholders on July 25, 2007 to seek the approval of its shareholders for the issue of the Bonds and for issue of the Shares to be issued upon conversion of the Bonds. The closing of the issue of the Bonds will be conditional upon such approval being duly given.

JPMorgan is the Sole Bookrunner and Sole Lead Manager for the Offering.

Source : Equity Bulls

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