GAIL India has planned a capital outlay strategy of around Rs.3, 800crore in fiscal 2009-10. The company will employ the funds for constructing fresh gas transportation pipelines.
GAIL is expected to increase Rs.500crore via a bonds issue with a green shoe alternative of Rs.200crore. Additionally, the company will increase Rs.700crore via OIDB, while the rest of the funds it decides to use from banks through tenure loans.
The borrowing of finances will happen in November to December. The company resolves to borrow Rs.6000crore in a period of 3 years. The company’s debt-equity ratio is likely to increase to 1:1 in the following 3 years.