PSL Raises Funds Through ECB.

PSL has raised $50 Mn through external commercial borrowings at nearly 500 basis points over LIBOR, to fund expansion of is domestic capacity to cater to new gas projects.

The fund was raised from Bank of Baroda, Bank of India, Punjab National Bank (International) and Canara Bank through their overseas branches.

Eventually, the firm also intends to raise funds through equity although nothing has been finalized on those lines yet. PSL has a total order book position of Rs3,800-4000 crore and has bid for several new projects both in India and abroad and hopes to win new orders over the next 3-5 months. It expects to win 2-3 mega-projects from GAIL and is also bidding aggressively for offshore pipeline coating contracts.

The firm, which has a capex of about $75 million for FY10, plans to set up a new greenfield project overseas to cater to the rising demand for oil and gas pipelines.If the project is approved, it will be funded via equity.

PSL is the largest producer of HSAW pipes in India, with a production capacity of over 1 million ton mark. It posted a marginal rise in net profit to Rs 85.93 crore for the year-ending March 2009 on a 57% growth in net sales.

Last month, Delhi International Airport raised $350 Mn through ECBs in which 3 Indian Banks had participated.

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