Orchid Chem to repay FCCB through ECB, borrows $100 mn

Orchid Chemicals is buzzing on the radar today on account of the USD 100 million debt that the company has raised through external commercial borrowing. K Raghavendra Rao, chairman and managing director, Orchid Chemicals spoke to CNBC-TV18 about the fund-raising and strategies of the company going ahead.

Below is the edited transcript of the interview. Also watch the accompanying video.

Q: Just take us through the details of the USD 100 million ECB that you have raised?

A: Yes we have got a sanction for USD 100 million of External Commercial Borrowings (ECB) which will be used to repay the bonds for USD 117 million which are maturing in February 2012. Of course, there is also a yield-to-maturity (YTM) also to be added to this which will come from internal accruals. So we are replacing dollars with dollars and borrowing also is less than the repayment. So we don