26 International Financing Review Asia February 10 2018raised Rs30.26bn from nine series of rupee
bonds of two to 10 years at 9.75% with credit
enhancement and a government guarantee.
UPPC is the holding company for
Uttar Pradesh’s five power-distribution
companies, or discoms.› SREI INFRA READIES PUBLIC ISSUESREI INFRASTRUCTURE FINANCE is targeting a
public issue of bonds to raise up to Rs20bn,
according to an offer document.
The infrastructure financier aims to
raise Rs2bn, plus greenshoe amount of up
to Rs15bn, from a secured piece and up to
Rs5bn from a subordinated portion.
It has fixed the coupons at 8.50% for a
400-day issue, 8.75% for a three-year piece
and 9.00% for a five-year portion. It has also
fixed the price for 10-year subordinated
notes at 9.50%.
All tranches have monthly, annual and
cumulative coupon options, except for the
400-day tenor, which only has an annual
and cumulative coupon option.
Senior citizens, existing bondholders
and shareholders of the company will get
additional coupon incentive of 0.25% each.
Brickwork has assigned a AA+ rating to
the notes.The issue, which opened last Friday,
closes on March 7.
SPA Securities is the lead manager on the
issue.› ADANI INFRA SELLS ZERO COUPON NOTESADANI INFRA has sold Rs10bn of zero coupon
bonds due in April 2019, according to a
National Securities Depository filing.
The redemption premium for the notes is
fixed at 9.25%. There is a put/call option on
January 21 2019.
Brickwork has assigned a AA– (structured
obligation) rating to the senior secured
notes.
Earlier this month, Adani Infra raised
Rs5bn from zero coupon bonds due in April
2020.› NABARD RAISES 15-YEAR FUNDSNATIONAL BANK FOR AGRICULTURE AND RURAL
DEVELOPMENT (Nabard) has raised Rs8.64bn
from 15-year bonds priced at 8.19%,
according to a National Securities
Depository filing.
Two week ago, Nabard sold Rs1.35bn
of 15-year government of India-serviced
bonds at 7.99%, payable semi-annually. Thegovernment will pay the interest on the
bonds.
Crisil and India Ratings have both see the
bonds as AAA.
Separately, pipe manufacturer WELSPUN
raised Rs2.5bn from six-year rupee bonds
at 8.9%.
The notes have AA– ratings from both
Crisil and Care.EQUITY CAPITAL MARKETS
› VATIKA INVITES BIDS FOR RS6BN IPOVATIKA HOSPITALITY has invited bids from
banks to manage its Rs5bn–Rs6bn
(US$78m–$94m) IPO planned for later this
year, according to people with knowledge
of the process.
The domestic IPO is likely to be a
combination of primary and secondary
shares.
The funds from the IPO will be used to
expand the hotel business.
The company owns The Westin at
Gurugram and The Westin resort at Sohna.
It also owns restaurants like Coriander Leaf,
56Italiano, 56Fresca and Nukkadwala.INDONESIA
DEBT CAPITAL MARKETS
› PANIN PLANS FIVE-YEAR RUPIAH ISSUEPANIN BANK intends to issue Rp3.9trn
(US$285m) five-year rupiah bonds at
7.6% with the help of five lead arrangers,
according to a source close to the plans.
The five the Indonesian bank has
appointed are Danareksa, Indo Premier,
Evergreen, RHB and Trimegah Sekuritas.
The issue opens on February 21 and
closes the next day.
Pefindo has assigned a AA rating to the
notes, the proceeds of which will be used
for working capital.› PEGADAIAN PLANS TRIPLE-TRANCHERState-owned auction house PEGADAIAN plans
to sell Rp3.5trn of rupiah bonds in three
tranches, according to the offer document.
The Indonesian issuer has put out
indicative price ranges of 5.6%–6.15% for a
370-day tranche, 6.5%–7.25% for a three-year
piece, and 7.0%–7.5% for a five-year portion.
Bookbuilding, which began on February
7, will close on February 20. The pay-in will
take place on March 15.RBI sparks rupee issuance
Bonds Yields fall after policy meeting cools inflation fearsIndian state-owned issuers are lining up to
issue rupee bonds after the Reserve Bank
of India kept policy rates unchanged and
retained its neutral stance.
RURAL ELECTRIFICATION CORP asked investors
last Friday to place bids for bonds, maturing
on March 2021, to raise Rs5bn (US$77.7m),
plus an undisclosed greenshoe.
A day earlier, POWER FINANCE CORP sold a two-
tranche bond at 7.73% each to raise Rs18.3bn.
The tranches mature in March 2021 and April
2021, respectively.
Public-sector companies are returning
to the market to sell bonds after the policy
annoucement eased bond yields.
The yield on India’s 10-year government
securities fell to 7.46% on Friday afternoon
after rising to a 17-month high of 7.61% earlier
in the week on concerns of a hawkish policy
statement and following a higher borrowing
programme in the 2018/19 budget. The yield
on 10-year AAA corporate bonds narrowed
5bp to 8.1% after the policy statement.
The RBI kept the repo rate unchanged at
6% last Wednesday, in line with expectations,
while also softening its inflation forecast for
the second half of FY18 to 4.5%-4.6%, evenafter oil and food prices pushed the consumer
price index to a 17-month high of 5.21% in
December. The RBI appeared mindful that a
premature tightening could dent an economy
seeing only a tentative recovery after growing
at the slowest pace in about three years.
“The market was slightly circumspect in
light of fiscal slippage and was expecting a
stern stance. In contrast, the RBI came with
status quo accompanied by a milder stance.
This came as a sigh of relief for an excessively
bearish market,” said Lakshmi Iyer, chief
investment officer of debt and head of
products at Kotak Mutual Fund.
Investors hope the RBI will increase the
foreign portfolio investment limit for bonds in
the coming days.
“We believe any developments around
a potential revision to the foreign portfolio
investor framework and the RBI’s open-
market operation buybacks (which are more
likely in the second half of FY19) should be
keenly watched,” said Nomura in a February
7 note.
PFC and REC have yet to announce
officially their bond offerings.
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