Kinetic Engineering successfully prices FCCB

Kinetic Engineering Ltd on February 11, 2008 has announced the successful pricing and placement of USD 18.0 million unsubordinated unsecured foreign currency convertible bonds due 2013 (the "Bonds"). The Bonds will be convertible into ordinary shares of the Company which are quoted in Indian Rupees and listed on the Bombay Stock Exchange.

The Bonds have a tenor of 5 years and one day, and a yield to maturity of 5.45% per annum calculated on a semi-annual basis. The Bonds will be Issued at 100% and will be redeemed at 119.54%.

The bonds have a denomination of U.S. $ 100,000 each. The Conversion Price is Rs 156.00 per Share with a fixed rate of exchange on conversion of Rs 39.26 = U.S.$1.0O subject to adjustments in certain events.

The closing is expected on or about February 13, 2008. The Bonds have been sold under Reg S to qualified Institutional Investors only.

An in principle approval has been obtained to list the Bonds on the Singapore Stock Exchange. The Bonds will not be rated.

KBC Financial Products UK Ltd, Kotak Mahindra (UK) Ltd and Athena Capital are Joint Lead Arrangers for the offering.

Source : Equity Bulls

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