India-based paper manufacturer JK Paper has issued foreign currency convertible bonds (FCCB) worth EUR35m to global investors from Germany, France and the Netherlands, to fund its capacity expansion.
The company has issued FCCB worth €9m with a maturity date of 15 May 2016 and FCCB worth €6.5m with a redemption date of 15 November 2016.
The paper firm has also issued bonds worth €6.5m each with maturity dates of 15 May 2017 and 15 November 2017 respectively.
JK Paper is one of the leading producers of office paper, coated paper and high-end packaging board paper in the country. The company has 28% market share in office paper, 26% in packaging board paper and 16% in coated paper in the domestic market.
The company begun expansion project to increase the total installed capacity from 2,40,000 TPA to 3,90,000 TPA at its unit at Rayagada in Orissa at an investment of around INR16bn ($364m).
The Indian paper market is valued at around INR400bn ($8bn) per annum.