The Hindu Business Line : TVS Motor goes in for $60-m ECB

TVS Motor Company Ltd has contracted to borrow $60 million (Rs 270 crore) through `external commercial borrowing' route. The company has so far drawn $20 million.

The money would be utilised to finance both domestic capital needs, including the proposed three-wheeler project, and overseas investment, the company's Vice-President - Finance, Mr S.G. Murali, told Business Line today.

He said that HSBC and ABN Amro funded the loans. One deal for $40 million was contracted in September and the other for the rest of the amount in October. The company would get the funds at a rate of Libor plus 95 basis points, Mr Murali said. He said the company would decide on whether or not to hedge the loans as and when it draws them.

It may be recalled that the company had obtained the shareholders' approval at the last annual general meeting of September 10, to raise the board's borrowing powers from Rs 250 crore to Rs 750 crore.

As at end March 2004, the company's secured and unsecured loans amounted to Rs 120 crore, which left enough headroom to borrow further even without raising the board's borrowing powers.

Asked if the company would further raise funds this year, Mr Murali said it was too early to comment on that.

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