Chennai, Sep 16 - City-based oil drilling services company Aban Offshore plans to pay off part of its $3-billion debt after its shareholders Wednesday gave it the go-ahead to raise $1 billion through global depository receipts (GDRs) and qualified institutional placements (QIP).

'Shareholders passed an enabling resolution to raise $400 million through the issue of GDRs and Rs.2,500 crore (around $515 million) through QIP,' Aban managing director Reji Abraham told reporters here.

'We are also negotiating with banks to pay off the FCCB (foreign currency convertible bonds) of about $140 million that is maturing this year,' Abraham said on the sidelines of the company's annual general meeting Tuesday.

Aban's secured and unsecured debt stood at around Rs.16,600 crore at the end of last fiscal.

However, Abraham said the company was confident of squaring off its dues as the market was 'looking up'.