Hotel Leelaventure buys back FCCBs

Last Updated: Mon, Apr 06, 2009 11:26 hrs

Mumbai: Hospitality major Hotel Leelaventure on Monday said it has bought back nearly $50 million foreign currency convertible bonds (FCCBs) at discount from the international markets.

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In a filing to the Bombay Stock Exchange, Hotel Leela said that till March 31, 2009, the company has bought back and cancelled FCCBs worth $33 million, constituting 33 per cent of its $100 million bonds due in April 2012.

Further, the hotel chain operator has also bought back FCCBs worth €12.20 million (about $16.53 million), which constitutes 23.7 per cent of the €51.40 million bonds due in September 2010, it said.

“Our FCCB buyback exercise will not only add to our bottomline, but also generate good savings in the redemption premium which would otherwise have been payable on maturity,” Hotel Leelaventure Vice Chairman and MD, Mr Vivek Nair said.

Last year, the Reserve Bank of India had allowed the corporate houses to buyback FCCBs from the foreign markets if they are trading at a discount of 25 per cent from their book value.

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The shares of Hotel Leelaventure were trading at Rs 21, up 2.19 per cent in the afternoon trade on the BSE.

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