Sesa Goa Limited announced the final terms of the previously announced launch of an offering of Foreign Currency Convertible Bonds. The size of the offering was USD 500 million.

The FCCBs will have a coupon of 5% per annum, payable semi annually in arrear and will be convertible into equity shares of the Company. The conversion price has been set at INR 346.88 per share representing a premium of 28% to the reference price of INR 271.00 per share.

Proceeds from the offering will be used to expand the Company’s mining operations, for exploration for new resources and to further develop its pig iron and metallurgical coke operations. Use of proceeds will be in accordance with end-use restrictions specified in the External Commercial Borrowing regulations issued by the Reserve Bank of India.

The proposed offering of the FCCBs is subject to passing a special resolution of the shareholders of the Company at an Extraordinary General Meeting of the Company scheduled to be held on October 20th 2009 and other customary closing conditions. Settlement is expected to occur shortly thereafter, once all necessary approvals have been obtained.

Goldman Sachs (Asia) LLC and Morgan Stanley & Co International plc are acting as the joint book runners for the offering.