International Financing Review Asia November 25 2017 35COUNTRY REPORT INDIA› NABARD SELLS 15-YEAR BONDSNATIONAL BANK FOR AGRICULTURE AND RURAL
DEVELOPMENT has raised Rs7.35bn from 15-
year government of India-serviced rupee
bonds at 7.6%, according to a source.
It was targeting Rs7.9bn from the notes,
on which the government would be paying
interest semi-annually.
A week ago, Nabard scrapped an offering
of three-year and 74-day rupee bonds due to
a poor response.
In September, Nabard raised Rs10bn
from a tap of its September 2020s at a yield
of 6.97%.
Crisil and India Ratings see the notes as
AAA.› UNITED SPIRITS EYES MAIDEN ISSUEUNITED SPIRITS is in talks with bankers to
sell Rs3.0bn–Rs7.5bn of maiden three-year
rupee bonds, according to market
sources.
The liquor company, with Diageo as
majority owner, has yet to announce
officially the size and tenor of the offering.
Crisil recently assigned a AA+ (stable)
rating to the United Spirits’ non-convertible
debentures.› THREE ISSUERS SELL RUPEE BONDSThree Indian issuers have sold rupee bonds
at varying maturities to raise a combined
Rs43.01bn (U$663.5m).
POWER FINANCE CORP sold Rs28.01bn priced
a five-year portion at 7.35% and a 10-year
piece at 7.65%.
HOUSING AND URBAN DEVELOPMENT CORP sold
Rs7bn of three-year and one-month rupee
notes at 7.14%.
SMALL INDUSTRIES DEVELOPMENT BANK OF INDIA
raised Rs8bn from two-tranche bonds. It
priced a three-year and one-month bullet
piece at 7.08% and a three-year year and
one-month portion, with put and call
option at the end of two years, at 7%.› YES SELLS 10-YEAR T2S AT 7.8%YES BANK has privately placed Rs25bn of
Basel III-compliant 10-year Tier 2 rupee
bonds at 7.8%, according to a BSE filing.
The bonds were placed on September 29,
said the filing.
The Indian issuer’s own syndications
team was the sole arranger on the
offering.
India Ratings and Icra see the T2 notes as
AA+ (stable).› IRFC WITHDRAWS 10-YEAR SALEINDIAN RAILWAY FINANCE CORP has withdrawn a
Rs5bn offering of 10-year rupee bonds after
receiving a lowest bid of 7.6%, according to
a market source.
In August, IRFC sold Rs17.45bn of 10-year
rupee bonds at 7.33%.
The notes have AAA ratings from Crisil,
Icra and Care.› DCB BANK SELLS RS3BN OF T2SDCB BANK has sold Rs3bn of unsecured non-
convertible 10-year Tier 2 bonds at 9.85%,
according to data on National Securities
Depository.
Icra has assigned a A+ hybrid rating with
a stable outlook to the notes.
AK Capital is the lead arranger on the issue.
In November last year, the Indian private-
sector bank raised Rs1.5bn from 10-year T2
bonds at 9.85%.SYNDICATED LOANS
› GREATSHIP LAUNCHESMandated lead arrangers and bookrunners
Citigroup and Standard Chartered have
launched into general syndication a
US$249m refinancing for GREATSHIP (INDIA), a
subsidiary of Great Eastern Shipping.
The seven-year facility pays an interest
margin of 215bp over Libor and has a
remaining average life of 4.8 years. The two
leads have pre-funded the loan.
Banks can join as MLABs with US$40m or
more to earn 120bp in upfront fees for a top-
level all-in pricing of 240bp, or as MLAs with
US$25m–$39m to earn 110bp for an all-in of
238bp, or as lead arrangers with US$10m–
$24m to earn 100bp for an all-in of 236bp.
One-on-one meetings are slated for the
end of the month, while the deadline for
responses is mid-December.
Funds refinance a loan from last year.
The financing carries a letter of support
from Indian parent Gesco with offshore oil
rigs serving as security.EQUITY CAPITAL MARKETS
› KALYAN JEWELLERS HIRES FOR IPOKALYAN JEWELLERS has hired Axis, Citigroup,
ICICI Securities and UBS to manage an IPO
of at least Rs20bn (US$306m), according to
two persons with knowledge of the move.
The size of the float, expected to take
place next year, has yet to be decided.
Private-equity firm Warbug Pincus,
which has invested Rs17bn in the companyCSP seeks Aegis buy funds
Loans Three banks step up to underwrite facility for purchase of stake in BPOPrivate-equity sponsor CAPITAL SQUARE PARTNERS
is seeking a US$150m financing to back
its acquisition of Aegis, a business process
outsourcing company.
DBS Bank, ING Bank and Standard
Chartered are mandated lead arrangers,
bookrunners and underwriters on the facility,
split into a US$140m five-year amortising
term loan and a US$10m five-year revolving
credit facility. The term loan has an average
life of around 4.1 years.
Proceeds of the term loan will account for
around 50% of the purchase consideration,
while the revolver will meet working capital
requirements. Additionally, about US$40m
of equity contribution from Singapore-based
Capital Square Partners will come from a five-
year mezzanine facility.
The total transaction equity value is
US$290m, or an Ebitda multiple of 7.4x, and
includes US$20m of working-capital debt in
India, which will continue post-completion,
and US$10m cash, which will remain at the
target at closing.
The target’s revenue and Ebitda for
the financial year to March 31 2017 wereUS$372m and US$39m, respectively.
Repayment is predicated on upstreaming
of cash from the operating companies
across various jurisdictions through royalty
payments, interest on inter-company debt
and dividends.
The facilities, excluding the mezzanine
piece, carry upstream guarantees, plus a
charge of assets and shares of operating
companies contributing about 25% of
consolidated Ebitda. There will also be an
additional pledge on shares of the Malaysia
and Argentina operating companies, which
constitute an additional 34% of consolidated
Ebitda.
In April, AGC Holdings Mauritius, a wholly
owned portfolio company of Essar Global,
entered into a definitive agreement with
Capital Square Partners to sell 100% of its
stake in ESM Holdings Mauritius, the holding
company of Aegis.
Headquartered in India, Aegis is among the
leading global BPO players with operations
in 47 locations, across 10 countries, and an
employee base of over 40,000.
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