Grasim raises $50 million via five-year loan

Grasim Industries Ltd has raised $50 million through a five-year loan at 93 basis points over the London Inter-Bank Offered Rate, or LIBOR, a spokeswoman for the company said on Friday.

The deal was concluded with a leading state-run bank last month and the funds are expected to come in by mid-next month, she said.

The total cost of borrowing, including the cost of hedging the foreign exchange risk, is around 5.10 per cent, the spokeswoman said.

A top-rated five-year domestic corporate bond in the secondary market, in contrast, is trading at around 5.75 per cent.

The company plans to utilise the funds to repay high-cost debt raised earlier.