2. R-POWER GETS $5-B LINE OF CREDIT
FROM US EX-IM
THE Export-Import Bank of United States will offer loans up to $5
billion to Reliance Power, part of the Anil Dhirubhai Ambani Group, to
help the Indian company purchase US goods and services for various
power plants.
The agreement would make available long-term dollar loans in the
next three years.
Considering that Ex-Im Bank exposure to India has been primarily
limited to public sector, execution of the MoU is a landmark event that
would go a long way in increasing diversity of lenders that could
provide long-term finance to India’s private sector
Reliance Power is implementing power projects with aggregate capacity
of over 37,000 mw. The company had earlier placed a $750-million
order with General Electric for its power plants.
3. PRODUCT COS WILT AS IT BUY FAVOURS MAJORS-
INDIAN GOVERNMENT SHOULD MARK A PART OF TECH
SPEND FOR START-UPS
4. ONGC BLOCKS $500M PAYMENTS TO CAIRN-ALLEGES
PARTNER INFLATED EXPENSES IN RAJASTHAN BLOCK
CAIRN Energy, struggling to get approval for its $9.6-billion deal to sell its Indian unit
to Vedanta Resources, is getting mired in more problems as its dayto-day operations and
expansion plans are suffering in the wake of simmering tensions with the ONGC
.
5. ICICI RAISES $1 B VIA 10-YR BOND SALE-BOND
OFFERING BANK’S LARGEST IN OVER 3 YEARS;
LARGEST ORDER BOOK OF $5 B
ICICI Bank has raised $1 billion through the issue of 10-year fixed rate notes to
international investors. The bonds carry a coupon of 5.75%.
The return on the bonds translates into aspread of 309.26 basis points over London
Interbank Offered Rates (Libor) for a similar tenor.
At $1 billion, the bond offering is ICICI’s largest in over three years.
This is also the first 10-year senior bond from the Indian banking sector. Bankers feel
that one outcome of the second round of quantitative easing in the US would be an
increased demand for Indian paper where returns are expected to be high, thanks to
policy measures by the central bank.
The bond offering has received a ‘BBB-‘ from S&P
The notes are unsecured and unsubordinated obligations of the bank. Investors in these
bonds will get priority over all subordinated issues and these securities will be listed on
the Singapore Exchange.
The bank has issued bonds under Rule 144A of the Securities Act in the US, which
allows securities to be sold to QIBs without complete disclosure requirements that public
offerings are subjected to. Mr Chadha said 42% sold into the US on this bond
6. CAG REPORT OUT: TELECOM MINISTER IN THE DOCK-
CAG PEGS REVENUE LOSS DUE TO RAJA AT 1.8 L CR
COLOSSAL LOSS CAG indicts Raja
CAG says Raja caused Rs 177,000-crore loss to India
Raja's ministry sold spectrum to 9 new companies in 2008 using faulty &
outdated policy, causing Rs 140,000-crore loss
Doled out additional airwaves to existing telcos beyond what they were
entitled to, causing an additional loss of nearly Rs 37,000 cr to exchequer
Raja gave dual licence permits to RCOM & Tata Tele in 2008 using old
policy, causing a loss of up to Rs 37,000 crore
Raja ignored advice of telecom regulator Trai, finance ministry & law
ministry on pricing airwaves at realistic & market-driven rates
Raja dished out pan-India airwaves for Rs 1,651 crore despite S Tel
offering Rs 13,752 crore and even willing to enhance this offer if the
government were to receive a higher bid
Five of the nine companies that were given licences did not fulfil the
eligibility criteria, but communications ministry did not reject their
applications Existing telcos also benefitted from Raja
7.
8. CALL FOR TROUBLE: MURKIER DETAILS SET TO
EMERGE-ED SCANNER ON FOREIGN BUYERS OF NEW
TELCOS
Investigations into 2G mobile spectrum scam intensify as ED jumps into the fray
even as telecom minister’s exit looks imminent Weighing If Money From Stake
Sales Can Be Termed Criminal Proceeds
