COUNTRY REPORT INDIAINDIA
DEBT CAPITAL MARKETS
› PFC PRICES 10-YEAR BONDS AT 8.95%
POWER FINANCE CORP has priced Rs30bn
(US$405m) 10-year bonds at 8.95%,
according to a market source.
The Indian state-owned company was
eyeing Rs5bn, plus a greenshoe option of
Rs25bn.
Last month, PFC scrapped the sale of 10-
year bonds after it did not get the desired
price.
It has yet to make an official
announcement on the price, size and tenor
of the bond issue.
› HDFC PRINTS 10-YEAR BONDS AT 9.05%
HOUSING DEVELOPMENT FINANCE CORP has raised
Rs29.53bn from 10-year senior secured bonds
at 9.5%, according to a a market source.
HDFC had asked investors to place bids
on October 12. The pay-in will take place on
October 16.
The bonds are rated AAA by Crisil and
Icra.
The proceeds will be used for
refinancing.
HDFC is yet to make an official
announcement on the size.› IDFC IFL SELLS FIVE-YEAR BONDSIDFC INFRASTRUCTURE FINANCE LIMITED priced five-
year bonds (November 2023) at 9.12% to
raise Rs120m, according to a market source.
The Indian infrastructure financing
company was targeting Rs100m, with a
greenshoe option of Rs2.9bn.
It had asked investors to place bids
on National Stock Exchange’s electronic
bidding platform on October 11.
IDFC IFL is yet to make an official
announcement on the size and tenor of the
issue.› LIC HOUSING PRINTS 10-YEAR BONDSLIC HOUSING FINANCE has raised Rs9.12bn from
10-year bonds at 9.08%, according to a
market source.
The housing finance company was
targeting Rs5bn, plus a greenshoe option of
Rs10bn.
It had asked investors to place bids on
the National Stock Exchange’s electronic
bidding platform this afternoon.
LIC has yet to make an official
announcement on the yield, tenor and size
of the issue.
Crisil and Care have assigned AAA ratings
to the bonds.› NABARD PRICES 15-YEAR BONDS AT 8.98%India’s NATIONAL BANK FOR AGRICULTURE AND RURAL
DEVELOPMENT has fixed the yield at 8.98%
to raise Rs29.24bn from 15-year bonds,
according to a market source.
The notes will mature on October 14
2033.
The Indian policy lender had asked
investors to place bids on the NSE’s
electronic bidding platform from 10:00am
to 11:30am Indian time on October 12.
The pay-in will take place on October 15.
Earlier this month, Nabard raised
Rs28.14bn from government of India-
serviced 10-year bonds.
Nabard is yet to make an official
announcement on the price, size and tenor.› SHRIRAM FIXES YIELD FOR PUBLIC BONDSSHRIRAM TRANSPORT FINANCE has fixed the yield
for an offering of up to R13.5bn from a
public issue of bonds.
The Indian commercial vehicle finance
provider has set the effective yields at
9.39%, 9.49% and 9.69%, payable annually,
for three, five and 10-year bonds.
The effective yields for a monthly
interest payment option for five and 10
years are 9.5% and 9.7%, respectively.
The yields for a cumulative payment
option are 9.4% and 9.5% for three and five
years.Vedanta take-private loan launches
Loans Pro rata commitments sought for short-tenor tranchesThe US$1.1bn loan backing the move
to take private London-listed VEDANTA
RESOURCES has been launched into general
syndication.
Credit Suisse and Standard Chartered are
the mandated lead arrangers, bookrunners
and underwriters of the deal, and have
underwritten US$500m and US$600m,
respectively.
The financing comprises a US$200m
three-month tranche A, a US$400m 18-
month tranche B and a US$500m three-year
tranche C. Tranche A pays an interest margin
of 290bp over Libor, while tranches B and C
pay 446bp each.
Tranches A and B have bullet repayments,
while tranche C is amortising and has an
average life of 2.4 years.
Lenders are required to commit to
tranches A and B on a pro rata basis, leading
to a blended interest margin of 436bp over
Libor and a blended average life of 0.9 years.
The average lives for all tranches arecalculated assuming settlement takes place
on November 19.
Banks are being invited to join as MLAs
with US$75m or more, as lead arrangers with
tickets of US$50m–$74m, or as arrangers
with US$25m–$49m.
For pro rata participation in tranches A
and B, MLAs receive a top-level all-in pricing
of 472.67bp based on a flat participation
fee of 33bp, lead arrangers earn an all-in of
469.33bp via a fee of 30bp, while arrangers
receive an all-in of 466bp via a fee of 27bp.
For participation in tranche C, MLAs
receive a top-level all-in of 471bp based on a
participation fee of 60bp, lead arrangers get
an all-in of 466.83bp via a fee of 50bp, while
arrangers receive an all-in of 462.67bp via a
fee of 40bp.
The deadline for commitments is
November 5.
Proceeds from the financing will fund
the cash offer from Volcan Investments, the
family trust of Vedanta Resources ChairmanAnil Agarwal, to take Vedanta Resources
private for about US$1bn.
The offer of US$10.89, or 825 pence per
share, from Volcan, which held about 66.5%
of Vedanta Resources, values the company at
about US$3.07bn.
Vedanta Resources shareholders will also
be entitled to receive a US$0.41 dividend per
Vedanta Resources share. The offer price and
dividend represent a total value of US$11.30
per share.
On October 1, Vedanta Resources obtained
regulatory approval to delist itself from the
London Stock Exchange.
Volcan Investment Cyprus, a wholly owned
subsidiary of Volcan, is the borrower, while its
parent company will be the guarantor.
Vedanta Resources listed in London in
2003 in a US$644m offering. The delisting
will reduce the number of listed entities in
the group to two – Vedanta and Hindustan
Zinc, both listed in India.
EVELYNN LIN, CHIEN MI WONG