A consortium of bankers has already sanctioned $100 million by way of ECB (external commercial borrowing) limit to Orchid Chemicals and Pharmaceuticals.
In February 2007, Orchid floated five-year foreign currency convertible bonds (FCCBs) with an yield to maturity (YTM) of 7.5 per cent. The total value of the outstanding FCCBs, including the YTM, works out to $117 million.
“We are fully geared to redeem the maturing FCCBs. The ECB sanction that we have received, coupled with our internal accruals, will enable us to comfortably redeem the outstanding FCCBs on the due date. With over 85 per cent of Orchid's sales being exports and billed in U.S. dollar, the company has a natural hedge against currency fluctuations,” a release quoted K. Raghavendra Rao, Chairman and Managing Director, as saying.