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Alpen Capital India raises EUR 35 million via FCCBs for JK Paper

New Delhi / Mumbai, 2nd June, 2011

Alpen Capital India Private Limited acted as the Merchant banker along with Rabo India to assist JK Paper to issue unsecured Foreign Currency Convertible Bonds (FCCBs) for an amount not exceeding Euro 35 mn (approximately Rs. 225 crores). These bonds were issued on a private placement basis to FMO (Netherlands), DEG (Germany) and PROPARCO (France) at an Initial Conversion Price of Rs. 65/- per equity share of Rs. 10/- each, subject to adjustments for the FCCBs. The FCCBs are convertible into Equity Shares anytime after 3.5 years from date of issue. If FCCBs are not converted, they are repayable between 5th and 7th years from date of issue.

The issue of FCCBs is towards partly meeting the capital expenditure of Rs 1653.37 Cr for the proposed expansion at JK Paper’s Odisha plant. The Project is primarily for, setting up a new or augmented fibre line with a capacity to produce approximately 215,000 TPA of pulp and paper machine for manufacturing 165,000 TPA of woodfree copy paper. This will increase the total installed capacity from 240,000 TPA to 390,000 TPA.

“We are pleased to conclude this transaction with Alpen Capital India. We look forward to working with them in other areas where their value added services will benefit our institution, our customers as well as our stakeholders”, says Harsh Pati Singhania, Managing Director, JK Paper Limited.

“We are delighted to be the merchant banker on this complex transaction in partnership with Rabo India. We value our relationship with JK Paper and are happy to play a part in their future development”, says Rohit Walia, Executive Vice Chairman & CEO, Alpen Capital Group.

Alpen Capital India Private Limited is the subsidiary of the Alpen Capital Group. It established operations in India in 2009 with offices in New Delhi and Mumbai. Alpen Capital India provides an entire range of merchant banking services to its Indian clients including issue management services, investment advisory services such as mergers & acquisitions advisory, Debt and Equity advisory and Debt Syndication. It also has offices in UAE, Qatar, Oman and Bahrain.