COUNTRY REPORT INDIABOC International and BOSC International
are the joint sponsors. BOC International
is the sole global coordinator and joint
bookrunner with DBS, Future Land Resources
Securities, Sunwah Kingsway and VBG Capital.
INDIA
DEBT CAPITAL MARKETS
› OFFSHORE INDIAN BOND FUNDS ON A ROLL
The assets under management of offshore
Indian bond funds have doubled to US$8bn
in 2017, according to a Fitch release.
The opening up of India’s domestic
capital market and the increase in the
investment limit for foreign portfolio
investors in recent years have drawn more
foreign capital into the bond market, said
Fitch.
Offshore Indian bond funds have grown
at 76% compounded annual growth rate
over the last five years from a low base,
while onshore India and global fund assets
have grown at an annual CAGR of 25% and
8%, respectively.
The majority of offshore Indian bond
funds (66%) were domiciled in Japan as of
December 2017 and 23% in Luxemburg. The
funds mainly invest in local-currency Indian
government or government-related securities
and highly rated corporate bonds with an
average duration of five to six years.
› DEWAN EYES RS150BN PUBLIC ISSUE
DEWAN HOUSING FINANCE CORPORATION (DHFL)
is in talks with bankers to raise up to
Rs150bn (US$2.24bn) from a public issue
of bonds, according to sources close to the
development.
It is looking at tenors of three to ten years.
The housing finance company is seeking
board approval to raise funds from the sale
of bonds to retail investors in one or more
tranches, according to a release on the
exchanges on April 30.
DHFL is yet to make an official
announcement on the size and tenor.
In September 2016, DHFL raised Rs100bn
from a triple-tranche public bond offering.› LAVASA DEFAULTS ON BOND PAYMENTIndian developer LAVASA has defaulted
on interest and principal payments on
non-convertible debentures and delayed
repayments to banks and financial
institutions, according to a filing on
exchanges.
The company has Rs2.2bn of bonds
outstanding and the next interest and
principal payment is due on June 30.
Lavasa and its units are in the process of
formulating a resolution plan along with
the lenders.
Lavasa incurred a net loss of Rs6.82bn
in the financial year ending March, with
current liabilities exceeding its current
assets by Rs23.9bn on the back of losses
from operations in the past few years.› NHB SCRAPS THREE-YEAR BOND ISSUENATIONAL HOUSING BANK has scrapped a three-
year rupee bond after receiving total bids of
less than the issue’s base size, according to
market sources.
NHB was targeting Rs10bn, plus a
greenshoe of the same amount. “NHB
received total bids worth Rs7.15bn, with
lowest bid at 8.1% for Rs4bn,” said a source.
The notes had a put/call option at the end
of 368 days.This is the fourth issue by a public
sector company to be scrapped since the
market regulator issued new bookbuilding
guidelines from April 1, making it
mandatory for issuers to seek bids through
an electronic platform every time they raise
Rs2bn or more from bonds, thus bypassing
intermediaries.
Market participants have blamed the
new system and higher yields for the
tepid response to bonds of public sector
companies.› PFC RAISES TAX-FREE BONDSPOWER FINANCE CORP has raised Rs5bn from
five-year tax-free bonds at 5.75%, according
to a filing on National Securities Depository
Limited.
The bonds were allotted privately on
April 30. The secured rupee notes are
eligible to be exempted from the capital
gains tax.
Crisil, Icra and Care Ratings have
assigned a AAA rating to the notes.› REC SELLS TAX-FREE BONDS AT 5.75%RURAL ELECTRIFICATION CORP has raised Rs10bn
from five-year tax-free bonds at 5.75%,
according to a filing on National Securities
Depository Limited.
The bonds were allotted privately on
April 30. The secured rupee notes are
eligible to be exempted from the capital
gains tax.
Crisil, India Ratings, Icra and Care
Ratings have assigned a AAA rating to the
notes.SYNDICATED LOANS
› JIO IN JAPANIndian mobile communications carrier
RELIANCE JIO INFOCOMM is inviting banks on four
Top lead managers of Indian rupee bonds
1/1/18 – 30/4/18
Amount
Name Issues Rs(m) %
1 Axis 66 349,092.2 33.7
2 HDFC 32 150,514.7 14.5
3 Trust Group 52 147,731.4 14.3
4 ICICI 44 78,924.7 7.6
5 Yes Bank 13 46,076.9 4.5
6 AK Capital 20 34,524.3 3.3
7 Kotak Mahindra 13 33,171.7 3.2
8 Edelweiss Financial 10 31,747.8 3.1
9 State Bank of India 13 27,548.9 2.7
10 Barclays 5 23,299.1 2.3
Total 129 1,035,550.3
*Market volume
Proportional credit
Source: Thomson Reuters SDC Code: AS23
Top bookrunners of India syndicated loans
1/1/18 – 30/4/18
Amount
Name Deals US$(m) %
1 Axis 6 964.7 17.4
2 State Bank of India 6 863.0 15.6
3 Yes Bank 4 784.5 14.2
4 L&T Financial Services 11 733.0 13.3
5 MUFG 4 420.1 7.6
6 Mizuho 3 353.5 6.4
7 ICICI 3 306.6 5.5
8 Indusind-Bank 5 157.3 2.8
9* Standard Chartered 1 128.7 2.3
9* DBS 1 128.7 2.3
9* ANZ 1 128.7 2.3
9* Credit Agricole 1 128.7 2.3
9* First Abu Dhabi Bank PJSC 1 128.7 2.3
Total 37 5,532.4
* Based on market of syndication and market total
Proportional credit
Source: Thomson Reuters SDC Code: S10bIndia equity and equity-related
1/1/18 – 30/4/18
Amount
Name Issues US$(m) %
1 Axis 10 1,452.3 14.4
2 Citigroup 8 1,367.3 13.6
3 Kotak Mahindra 9 1,124.2 11.2
4 State Bank of India 10 1,046.5 10.4
5 Morgan Stanley 1 692.4 6.9
6 ICICI 8 662.7 6.6
7 JM Financial 8 491.2 4.9
8 HDFC 3 446.1 4.4
9 BAML 2 360.4 3.6
10 Edelweiss Financial 7 343.0 3.4
Total 115 10,080.8Source: Thomson Reuters SDC Code: C1L