GTL Infrastructure Ltd. Successfully completes FCCB issue of US$ 300 Million
To roll out Pan India Network of app 25000 towers, with a capex of US$ 1.7 Billion (Rs. 6800 Crores)
Tweet-- GTL Infrastructure Limited (GTL Infra), pioneer of Shared Passive Telecom Infrastructure in India, has raised US$ 300 million, through a successful Foreign Currency Convertible Bonds (FCCBs) Issue on October 29th, 2007.
The issue lead managed by Citibank and Standard Chartered Bank, received an overwhelming response. A total of 93 Global Investors participated with confirmed orders in excess of US $ 1.102 billion, resulting in subscription of 4.41 times.
The funds raised will be used for the company’s expansion plans, and shows the confidence of the Foreign Institutional Investors in an Indian company executing a green field infrastructure project. GTL Infra is plans to roll out approximately 25000 towers across India, with a capital expenditure of US$ 1.7 Billion (Rs. 6800 Crores).
The details of the issue are as follows:
Size
Firm Basis - US $ 250 Million
Green Shoe Option - US $ 50 Million
Total - US $ 300 Million
Coupon
0% (Zero Percent)
Yield to maturity
6.9% per annum
Conversion Price
Rs 53.04/- per equity share (Premium Rs 43.04/-)
Pricing & Trading Date
October 29, 2007
Lead Managed by
1. Citigroup Global Markets Ltd.,
Citigroup Centre, Canada Square,
Canary Wharf, London E14 5 LB, United Kingdom
2. Standard Chartered Bank
1, Aldermanbury Square,
London EC2V 7SB, United Kingdom
The company has also recently concluded the GTL Infra has recently concluded two other equity related transactions, a rights issue at par and Issuance of warrants to promoters. The 1:1 rights issue at par opened on August 16, 2007 and closed on September 14, 2007, and added US$ 85 million (Rs 340 Crores) to the equity capital.
Also, the Board of Directors of GTL Infra had approved issuance of 26.37 Crore warrants on a preferential basis to Promoter Group, Industrial Development Finance Company Ltd (IDFC) & Technology Infrastructure Ltd, (Subject to shareholders approval). These warrants will be converted into Equity Shares at a price of Rs. 40 each (as per the formula prescribed under the SEBI (DIP) Guidelines) The warrants shall be converted into equity shares over a period of 18 months from the date of issuance of warrants. This will bring in additional funds to the tune of Rs 1055 Crores (US$ 250 Million).
GTL Infra also has Debt sanctioned of US$ 700 Million from leading Domestic and International Banks.
With the successful completion of the FCCB issue, funds from promoters and the debt sanctioned from the leading financial institutions, the company is fully geared up for completing its expansion plans of rolling out 25000 towers.
GTL Infrastructure would be offering this tower infrastructure on a shared basis to the Telecom Operators. The company is already servicing 5 national level and one regional level telecom operators, and has entered into long-term contracts spanning 10-15 years. The Company is currently operational in 12 circles viz. Maharashtra & Goa, Gujarat, Madhya Pradesh, Rajasthan, Karnataka, UP (E), Punjab, West Bengal, UP (W), Haryana, Bihar and Andhra Pradesh. The Company plans gradually to enter into additional 8 circles.
Notes to Editor
About GTL Infrastructure Limited
GTL Infra is part of Global Group, a leading business house of India. Global Assets Holding Corporation Pvt Limited (GHC) is the Holding Company of the Global group. The Global group is involved in various activities related to Telecom and Infrastructure sectors like Network Services, Tower sharing, Manufacturing of Towers, HR and Staffing services, Urban Infrastructure and Procurement and Management services. The estimated revenues for the Group for FY 2007-08 is Rs 2400 crores (USD 600 mn) with an estimated employee base of 12,675.
Established in February 2004, GTL Infrastructure Limited (GTL Infra) is in the business of Shared Passive Telecom Infrastructure and has a vision to become the largest Third Party Shared Infrastructure Provider in India. GTL Infrastructure is setting up a pan India network of over 25000 towers that can be shared among the telecom operators.
Media ContactVikas Arora, Sr. VP – Corporate Affairs,
vikasa@gtllimited.com, +91 98203 29847
Pranav Thakkar, AVP – Corporate Communications,
pranavt@gtllimited.com, +91 98339 24775
Safe Harbor:
Neither the information nor any opinion expressed in this press release constitutes an offer, or invitation to make an offer, or to buy any security issued by the company. This press release may contain predictions, estimates or other information regarding the Company's operations, which are forward looking in nature. While these forward looking statements represent our best current judgment on what the future holds, they are subject to risks and uncertainties that could cause actual results to differ materially and may involve risk and uncertainty. This press release is prepared for general purposes only and does not have any regard to the specific investment objectives, financial situation and particular needs of any specific person. No liability for any loss will arise with the company as a result of the action taken on the basis of information contained herein. For a discussion of the risks and uncertainties that may cause results to differ, you should review GTL Infra’s filings with stock exchanges, including the annual report and quarterly disclosures.