NEW DELHI: India will put its money where its mouth is. Battling widespread criticism in Washington that it pocketed a game-changing nuclear deal for free, India will sign a "commercial contract" for a small works agreement with Westinghouse, the only US nuclear company with any declared plan to set up nuclear power plants in India. The nuclear contract, for a modest sum of under $100 million, is expected to be signed between NPCIL and Westinghouse during the visit of PM Manmohan Singh to Washington later this month. While the deal is largely symbolic, it's a sign from India that it will try to walk the talk on welcoming nuclear reactors by US companies. They have refused to invest in the Indian nuclear sector because of concerns about India's nuclear liability law. The Indian government has so far maintained the law should not be a deterrent, but there are no takers in US or other countries for that argument. To that extent, this agreement would be seen as a statement of intent by India, certainly a PM who considers the nuclear deal to be his greatest legacy. Quite apart from the nuclear issue, it's clear the Barack Obama administration has taken India off the radar. During the initial discussions on Singh's visit, the White House, said sources, did not even offer a lunch meeting between Singh and Obama. Instead, a lunch with vice-president Joe Biden was put on the table. India refused. It was only later that the US side agreed to a meal to be shared by the two leaders. Last week's appointment of Rakesh Sood, an acknowledged expert nuclear negotiator, as PM's special envoy on nuclear matters is also seen as an effort to roll back the damage. According to PMO insiders, the appointment was made directly by the PM completely bypassing the MEA, which holds the nuclear policy account. The PM's visit will also be in the background of military strikes on Syria, which could have happened by the time he's there or about to happen. Whatever it is, Syria will be top of mind for everyone in DC, not to speak for Obama himself. The visit is important for Singh, who is looking at securing his legacy on the nuclear front. After he pushed the deal through Parliament in 2008, Singh has allowed the nuclear dossier to be preyed on by the atomic energy bureaucracy, effectively killing the deal. In the last year, the India-US relationship has been about bureaucrats on both sides blaming each other, while the relationship ran aground.
Showing posts with label new delhi. Show all posts
Showing posts with label new delhi. Show all posts
Tuesday, 10 September 2013
Saturday, 7 September 2013
Nokia to pay off NSN financing from $2 billion Microsoft loan
NEW DELHI: Finnish handset maker Nokia, which is selling its devices and services business to Microsoft, will borrow $1.97 billion from the US software giant to pay off loans taken to acquire the stake held by Siemens in their joint venture NSN.
In connection with the deal, Microsoft had agreed to make 1.5 billion euros of financing available to Nokia in the form of three tranches of $658.77 million convertible bonds.
The mobile phone maker has decided to draw down all the financing and will issue three tranches of senior unsecured convertible bonds, it said in a statement.
"Nokia intends to use the proceeds of the offering to prepay financing raised for the acquisition of the shares in NSN, which was completed in August 2013, and for general corporate purposes," the company said yesterday.
Microsoft last week agreed to acquire a major part of the devices and services business of Nokia and license its patents for about $7.2 billion. Nokia will keep its telecom network equipment arm NSN, mapping and location services (HERE), its CTO office and its patent portfolio.
In July, Nokia agreed to buy German engineering giant Siemens' 50% stake in their mobile broadband joint venture NSN for $2.2 billion. The firm was renamed Nokia Systems and Networks (NSN).
The bonds are expected to be issued on or about September 23, Nokia said. The first tranche matures in five years and has a 1.125% per annum coupon payable semi-annually with an initial conversion price of EUR 3.9338.
The second tranche of 2019 bonds has a 2.5% per annum coupon payable semi-annually and an initial conversion price of EUR 4.0851.
The third tranche matures in seven years and has a 3.625% per annum coupon payable semi-annually with an initial conversion price of EUR 4.2364.
Microsoft has agreed not to sell any of the bonds or convert them to Nokia shares before the sale of the devices and services business is closed, Nokia said. The transaction is expected to close in the first quarter of 2014.
In connection with the deal, Microsoft had agreed to make 1.5 billion euros of financing available to Nokia in the form of three tranches of $658.77 million convertible bonds.
The mobile phone maker has decided to draw down all the financing and will issue three tranches of senior unsecured convertible bonds, it said in a statement.
"Nokia intends to use the proceeds of the offering to prepay financing raised for the acquisition of the shares in NSN, which was completed in August 2013, and for general corporate purposes," the company said yesterday.
Microsoft last week agreed to acquire a major part of the devices and services business of Nokia and license its patents for about $7.2 billion. Nokia will keep its telecom network equipment arm NSN, mapping and location services (HERE), its CTO office and its patent portfolio.
In July, Nokia agreed to buy German engineering giant Siemens' 50% stake in their mobile broadband joint venture NSN for $2.2 billion. The firm was renamed Nokia Systems and Networks (NSN).
The bonds are expected to be issued on or about September 23, Nokia said. The first tranche matures in five years and has a 1.125% per annum coupon payable semi-annually with an initial conversion price of EUR 3.9338.
The second tranche of 2019 bonds has a 2.5% per annum coupon payable semi-annually and an initial conversion price of EUR 4.0851.
The third tranche matures in seven years and has a 3.625% per annum coupon payable semi-annually with an initial conversion price of EUR 4.2364.
Microsoft has agreed not to sell any of the bonds or convert them to Nokia shares before the sale of the devices and services business is closed, Nokia said. The transaction is expected to close in the first quarter of 2014.
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