Binani Cement Ltd (BCL) plans to raise $30 million via a bond issue in three months to fund China operations, a top company official said today.

"We are raising $30 million through debt. We are talking to several international and Chinese banks to raise funds through a bonds issue in the next three months," Binani Group of Industries managing director Vinod Juneja told reporters here.

The debt fund will be used to finance the expansion of the firm's Chinese operations. The company plans to start its 2.5 million tonnes expanded China unit operations in mid-2011.

Shandong Binani Rong'An Cement Co Ltd, China, a BCL subsidiary, has undertaken expansion of its manufacturing capacity from 0.50 million MT to three million MT at an estimated project cost of Rs600 crore. The land acquisition, project design and engineering works are in progress. The plant is expected to go into production by mid-2011, he said.

Asked why he was tapping global market for funds, Juneja said raising money in Indian rupee is costly, while rate of  interest was minimum in the foreign currency market.

The company has also drawn up capex plans of Rs1,700 crore to be spent over the next two to three years which include greenfield expansion in Gujarat, grinding unit in Mauritius, expansion in China and mine development in Nimbri Chandawatan
in Rajasthan.