in areas like water supply, transportation
and infrastructure.
› NABARD TAPS JAN 2022 BONDS
NATIONAL BANK FOR AGRICULTURE AND RURAL
DEVELOPMENT has raised Rs17.05bn from a tap
of January 2022 bonds at a clean price of
100.28, or a yield of 8.5%.
It had asked investors to place bids on
BSE’s electronic platform on August 13.
The week before, Nabard raised
Rs15.61bn from a tap of a January 2022
bond at a yield of 8.35%.
This is Nabard’s fifth bond offering since
July.
It is yet to make an official
announcement on the yield, size and tenor
of the bond offering.
› RENEW POWER MULLS 10-YEAR BONDS
RENEW POWER is in talks with bankers to raise
Rs14bn from 10-year bonds, according to a
market source.
The solar and wind energy company,
which counts Goldman Sachs and Abu
Dhabi Investment Authority among its
investors, is planning to issue the notes
through special-purpose vehicles with
cross-guarantees.
L&T Financial Consultants is likely to be the
arranger for the deal.
The funds will be used to refinance
existing term loans.
Recently, the Indian renewable energy
company postponed its US$1bn–$1.3bn
IPO after investor demand came below
expectations.
In March, ReNew Power raised Rs10bn
from three-year bonds at 9.6%.
ReNew has yet to make an official
announcement on the new issue.SYNDICATED LOANS
› SHRIRAM TRANSPORT ON RETURN LEGMumbai-listed SHRIRAM TRANSPORT FINANCE has
launched a US$350m five-year loan, barely a
month after completing a larger borrowing.
Deutsche Bank , HSBC , ICICI , Kotak Mahindra
Bank and Standard Chartered are the
mandated lead arrangers and bookrunners
of the financing, which has a US$100m
greenshoe option.
The deal offers an interest margin of
140bp over Libor and has a remaining life
of 4.83 years.
MLAs committing US$50m or more
will receive an all-in pricing of 165.9bp
via a 125bp management fee, while lead
arrangers that commit US$25m–$49m will
obtain an all-in pricing of 162.8bp via a
110bp fee. Arrangers that commit US$10m–
$24m will get an all-in pricing of 160.7bp
via a 100bp fee.
Bank meetings were planned for
Singapore on August 16, Taipei on August17 and Mumbai on August 20. The deadline
for responses is September 14.
Funds are for general corporate purposes.
Last month, the borrower signed a
US$420m five-year senior loan. Deutsche
Bank Singapore Branch, First Abu Dhabi
Bank, HSBC and StanChart were the
lenders in that deal.
Shriram Transport Finance provides
commercial vehicle financing services in
India.› INDIABULLS INCREASES LOANINDIABULLS HOUSING FINANCE has increased
its five-year loan to US$270m from the
US$200m target.
ANZ , Barclays and MUF G were the original
mandated lead arrangers and bookrunners
of the bullet loan, while CTBC Bank and
Sumitomo Mitsui Trust Bank came in with the
same title.
The deal pays a top-level all-in pricing
of 167bp based on an interest margin of
145bp over Libor.
Signing took place on August 8.
For full allocations, see http://www.ifrasia.com.EQUITY CAPITAL MARKETS
› SANSERA ENGINEERING PRE-MARKETS IPOSANSERA ENGINEERING has started pre-marketing
an Indian IPO of up to Rs15bn (US$220m).RCom adjourns bondholder vote
Restructuring Indian telco reschedules key creditor meeting for August 24RELIANCE COMMUNICATIONS said it had adjourned
a bondholder meeting scheduled for August
10, after failing to reach a quorum.
Holders of the Indian telco’s US$300m
6.5% senior secured bonds due 2020 were
due to vote on waivers and modifications to
the notes as part of a restructuring scheme.
The vote needed two or more people holding
at least 75% of the notes to participate.
The meeting has been rescheduled
for August 24. Since the first meeting
was adjourned, the next vote will need
participation from holders of only 25% of the
bonds to form a quorum.
The vote is a key step in RCom’s bid to
avoid bankruptcy by selling assets and
slashing its debt burden.
Under the restructuring proposal,
bondholders can exchange the existing
bonds at a discount for either cash or their
share of a total of US$45m zero-couponunrated senior unsecured notes due August
27 2023 to be issued by RCom’s wholly
owned subsidiary Global Cloud Xchange. The
amount in cash has yet to be determined, but
it will be at least 3.5% of face value.
Bondholders also stand to receive further
payouts subject to a successful restructuring,
taking the maximum possible recovery rate
to around 53 cents on the dollar.
Bondholders have been asked to approve
the issue of contingent value rights in lieu of
two other scheduled cash payments.
They have also been asked to approve the
modification of a clause in the 2020 bonds to
allow them to be redeemed in full at US$35
per US$1,000 in face value if at least 15% of
the bonds are tendered or exchanged under
the offer.
Bondholders giving their consent to the
changes will also receive their share of a
US$13m cash payment. If all bondholdersconsent, they will receive US$43.3 per
US$1,000 of notes held.
“We think the restructuring options
offered by RCom are not very favourable for
bondholders,” wrote CreditSights earlier.
The tender and exchange offer will end on
August 22.
On August 11, RCom agreed to transfer
some of its spectrum allocations to Reliance
Jio, as part of its ongoing plan to raise cash
from asset sales.
It did not disclose the price Jio paid. The
transaction is subject to regulatory approvals
and consent from all lenders.
RCom also reinstated bank guarantees
totalling Rs7.74bn (US$110m) with India’s
Department of Telecommunications.
The telco was required to reinstate the
guarantees by September 10 or lose its
spectrum licences.
DANIEL STANTON