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Moser Baer gets $84 mn export credit

Moser Baer India Ltd, the world's fifth-largest maker of optical compact discs, on Thursday said it got a long-term export credit of euro 97 ($84 million) from foreign banks to fund its ongoing expansion plans.

The company's general manager-treasury Rakesh Govil told Reuters on the sidelines of a news conference that the loan was secured at "an attractive rate and would help the company reduce its borrowing costs".

He declined to give details.

According to the company's latest results released earlier this week, the company spent nearly Rs 94 million on interest payments in the quarter ended June.

Its net profit for the April-June period rose 47.6 per cent year-on-year to Rs 453.82 million ($9.63 million) on net sales that rose 106 per cent to Rs 1.45 billion.

Govil said the loan was for a period of six years and was funded by a group of European investment banks led by the Munich-based Bayerische Hypo-und VereinsBank AG.

The other banks were ANZ Banking Group Ltd and Standard Chartered Bank.

A statement from New Delhi-based Moser said the company had fully tied up the funding requirement for its $233 million expansion of its optical media production facilities to 760 million units per annum by March 2002, up from 450 million at the end of June.

It also said after the expansion the company would become the third largest optical media maker in the world.

"We would be number three behind Taiwan's Ritek and CMC Magnetics Corp," Govil said.

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