36 International Financing Review Asia November 25 2017since 2014, will be selling shares in the IPO.
At this stage, it is not clear if owner Kalyan
Group would sell shares and if the IPO
would have a primary share component.
The jewellery chain started operations in
1993 and has nearly 100 stores in India and
the Middle East.› QUESS OWNERS TRIM STAKEThe largest shareholder and chairman of
Indian business services provider QUESS are
selling a combined 6.14% stake in an offer
for sale to raise at least Rs6.8bn.
Travel company Thomas Cook is selling
7.5m shares, and Quess chairman Ajit
Abraham is offering 1m. Axis Capital is the
bookrunner.
The OFS comes at a floor price of Rs800
per share. About 10% of the shares will
be sold to retail investors. The non-retail
tranche opened last Thursday and the retail
tranche last Friday.
The non-retail tranche was 5.7 times
covered with an indicative price of
Rs837.31.
Shares of Quess have risen 39% year to
date, climbing 11.7% since last Monday’s
announcement of the acquisition of a
controlling stake in Tata Business Support
Services.
After the sale, Thomas Cook will hold a
51.56% stake in Quess.› UBI AND BOI HIRE QIP BANKSState-owned UNION BANK OF INDIA and BANK
OF INDIA have mandated for qualified
institutional placements of up to a
combined Rs70bn, according to two
persons with knowledge of the plans.
The banks aim to launch the QIPs before
the end of the year.
UBI has hired Edelweiss, Jefferies, ICICI
Securities and Yes Bank for a QIP of up
to Rs20bn and has started meeting
investors.
BOI has hired ICICI Securities, IDBI Capital
and SBI Capital for a QIP of Rs10bn–Rs50bn.
The final size will depend on investor
feedback. Meetings with investors are
expected to start soon.
State-owned banks are preparing to
sell shares after the federal government
unveiled a Rs2.11trn two-year
recapitalisation plan last month for the
sector, which is under pressure from bad
loans and weak capital.
Under the plan, Rs1.35trn will be raised
through special recapitalisation bonds,
Rs580bn will come from equity sales and
Rs180bn from budgetary resources.
As reported earlier, Punjab National
Bank plans to sell shares for Rs20bn, while
Andhra Bank, Indian Bank and Syndicate
Bank are each aiming for QIPs of Rs5bn–
Rs6bn.› CITIGROUP SELLS BIGGER L&T BLOCKCitigroup has sold a block of 43m shares
in L&T FINANCE HOLDINGS for Rs7.8bn after
pricing the upsized trade at the bottom
of the Rs180.50–Rs188.05 range,
according to a person with knowledge of
the deal.
Citigroup Global Markets Mauritius had
originally planned to sell 39.2m shares,
equal to a 2.15% stake, according to a term
sheet.
Around 20 investors participated in the
sale, the final price of which was at a 4.01%
discount to the pre-deal close of Rs188.05.
The sale was conducted to unwind
partially CGMM’s hedge position in
connection with a total return swap
between CGMML and Bain Capital.
Citigroup was the sole bookrunner.INDONESIA
DEBT CAPITAL MARKETS
› ABM INVESTAMA ADDS TO 2022 LINEIntegrated energy resources, services and
logistics group ABM INVESTAMA, rated Ba3/BB–Tata Motors £640m facility into general
Loans Indian borrower raising funds to refinance borrowings from 2015 and 2016The £640m (US$850m) financing for TATA
MOTORS has been launched into general
syndication at three ticket levels.
ANZ, Credit Agricole, DBS Bank, First Abu
Dhabi Bank, Mitsubishi UFJ Financial Group,
Mizuho Bank and Standard Chartered are
mandated lead arrangers and bookrunners,
while Bank of Nova Scotia, Citigroup, Export
Development Canada and Sumitomo Mitsui
Banking Corp joined the loan in senior
syndication as MLAs.
The financing comprises a £415m dual-
tranche facility A and a £225m facility B.
Facility A is split into two amortising portions- one maturing in July 2020 and another in
July 2023. Facility B has a bullet repayment
due in July 2022.
Based on a blended interest margin of
120.4bp and a blended remaining average
life of 4.3 years, lenders are offered a top-
level all-in pricing of 132bp and the lead
arranger title for £30m or more, via an
upfront fee of 50bp, an all-in of 129.7bp and
the arranger title for £20m–£29m, via a fee
of 40bp, and an all-in of 127.4bp and the
manager title for £10m–£19m, via a fee of
30bp.
The deadline for commitments is
December 22. A bank meeting was held in
Singapore on Monday.
The new loan is denominated in pound
sterling to match revenues from Jaguar Land
Rover, a unit of Tata Motors.
Funds refinance a US$250m facility from
March 2016 and a US$600m borrowing from
December 2015.
The March 2016 loan funded the
buyback of the Indian automaker’s S$350m
(US$243m then) 4.25% notes due 2018. ANZ
was the sole MLAB on the financing, which
drew 17 other lenders in general syndication.
The loan offered a top-level all-in of 180bp,
based on an interest margin of 165bp over
Libor, and has a 4.24-year door-to-door tenor
and four-year remaining life.
The December 2015 facility compriseda US$300m five-year tranche A and a
US$300m seven-year tranche B. ANZ, Credit
Agricole, DBS, First Gulf Bank, StanChart
and State Bank of India were the MLABs on
the loan, which attracted 32 other lenders in
general syndication. Tranches A and B paid
top-level all-ins of 190.49bp and 241.64bp,
based on interest margins of 176bp and
227bp over Libor, and average lives of 4.83
and 6.83 years, respectively. The blended
margin is around 205bp over Libor and the
blended average life is 5.83 years.
Tata Motors also raised a US$250m
syndicated loan via Fiat India Automobiles- a 50:50 joint venture with Fiat Chrysler
Automobiles – in March 2016. Citigroup and
SBI were the MLABs on that facility, which
attracted three other lenders. That loan,
which paid a top-level all-in of 250bp, based
on an interest margin of 235bp over Libor,
has a door-to-door tenor of 7.6 years and an
average life of 5.1 years.
CHIEN MI WONG
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