Ennore Port Ltd, India’s 12th major port and the only government owned port under corporate form of management, has announced plans to raise upto Rs 500 crore from the debt capital market through a public issue of tax free secured, redeemable non-convertible bonds of face value of Rs. 1,000 each. The issue opens on February 18, 2014 and will close on March 14, 2014. One can apply for a minimum of five bonds.

The bond issue aggregates up to Rs. 250 crore, with an option to retain over-subscription up to Rs. 250 crore, the company said.

The funds will be used for capital dredging projects (Rs 300 crore), augmenting the rail and road connectivity (Rs 100 crore) and construction of third coal berth (Rs 100 crore), M.A. Bhaskarachar, Chairman & Managing Director, Ennore Port Ltd said at a press conference in Mumbai.

The coupon rate of bonds for retail individual investors will be 8.61 per cent per annum for 10 years, 9.00 per cent for 15 years and 9.00 per cent for 20 years.

The bond issue has got CARE AA, and ICRA AA ratings indicating stable outlook. The bonds will be listed on the BSE.

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