Educomp Solutions ha said that it will repay all of the $78.5 million in existing overseas borrowings on due date.

The company has tied up $155 million to repay the foreign currency convertible borrowings (FCCBs)on time. Out of the total $78.5 million in foreign borrowings, the company had received$70 million through the ECB under an 8.5 years term.

Educomp managed to raise $30 million under external commercial borrowings from IFC and remaining $40 million from Societe De Promotion. It is planning to raise $50 million through preferential allotment of shares to IFC, Proparco & Mount Kellett at a rate of Rs149.16 per unit.

It will also issue preferential allotment of shares and warrants to its promoters for upto $55 million at the rate of Rs 193.74 per share. The price is a premium of about 44 percent to its current market price.

Educomp said that it will use utilise $111 million for existing FCCB redemption and $44 million for strengthening its balance sheet and for meeting capital expenditure.

The decision to repay all of the foreign borrowings on time was taken at a meeting of committee of its board of directors. The board has called for a Extraordinary General Meeting (EGM) of the company shareholders on July 16, 20112 to ask for their backing for the plans.