Karuturi to raise $250 mn for agri project in Ethopia

Bangalore-based Karuturi Global Ltd, the world?s largest producers of roses, plans to raise $250 million, through debt of $150 million and $100 million through equity route to finance an agriculture project involving 7.5 lakh acre in Ethopia.

The company has already acquired 1-lakh acre while the acquisition of the remaining 6.5-lakh acre would be completed by the end of 2008, said Sai Ramakrishna Karuturi, managing director of Karuturi.

The debt is being raised through consortium of banks in Ethopia and equity by diluting up to 10% stake in the company?s wholly owned Dubai-based subsidiary Karuturi Overseas Ltd, which will serve as a special purpose vehicle for all investment needs in Kenya, Ethopia, Europe and Dubai.

Proximity to the potential markets like Europe, Middle East and Comesa countries will enable this acquisition to significant revenues. ?The revenue from the new acquisition would flow into balance sheet from the third quarter of the current fiscal,? he added.

This article was first uploaded on May thirty, twenty eight, at thirty-two minutes past twelve in the am.