Unitech targets $700m via FCCBs

Unitech targets $700m via FCCBs
The Economic Times, November 25, 2009, Page 1

Realtor Says Money For Township Project & Not To Retire Debts

Arun Kumar & Deepshikha Sikarwar NEW DELHI

UNITECH, India’s second-largest real estate company, has sought approvals from the government and central bank to raise $700 million (Rs 3,200 crore) through foreign currency convertible bonds (FCCBs), the first time a local realtor has sought to raise funds using this route in more than two years.

New Delhi-based Unitech, among those severely hit by the real estate downturn, has applied for approvals to the Department of Industrial Policy and Planning (DIPP) and the Reserve Bank of India (RBI), and has assured them that the funds will be used to develop an integrated township and not repay existing debt.

A senior government official told ET that the DIPP has sent the proposal to the department of economic affairs in the finance ministry after clearing it for further approval.