COUNTRY REPORT INDIAThe secured debentures of ABF are rated
AAA (stable) by India Ratings and Icra.
Crisil has assigned AAA ratings to the
bonds of HDB Financial Services and Kotak
Mahindra Investments.
The deals are a response to demand
from mutual funds’ fixed maturity plans,
according to a domestic fund manager.
› SIDBI PRINTS RS12.45BN AT 8.81%
SMALL INDUSTRIES DEVELOPMENT BANK has printed
Rs12.45bn three-year and three-month
bonds at 8.81%, according to a market
source.
It was seeking bids to raise up to Rs15bn
from bonds on the electronic platform on
October 24.
The notes are rated AAA by Care.
In August, Sidbi raised Rs15bn from
three-year bonds at 8.4%.
Sidbi is yet to make an official
announcement on the final yield and the
size
› TATA POWER SEEKS BOARD APPROVAL
TATA POWER will seek board approval on
October 29 to issue bonds via a private
placement, according to a filing on
exchanges.
On October 12, Crisil Ratings assigned
a AA– (stable) rating to Tata Power's non-
convertible debentures aggregating to
Rs15.64bn.
The Indian utility is coming to the
domestic bond market to raise funds after
nearly a year's absence. In November last
year, it raised Rs15bn from bonds in an
equally redeemable format at the end of
the third, fourth, fifth, sixth and seventh
years, at 7.99%.
Tata Power has been active in the dollar
loan market in recent months. It launched
a US$245m three-year refinancing into
general syndication with an interest margin
of 115bp over Libor on October 22.SYNDICATED LOANS
› BPCL, BHARAT OMAN SEND RFPSIndia’s state-owned BHARAT PETROLEUM and
an affiliated entity, BHARAT OMAN REFINERIES,
have each sent out request for proposals for
loans totalling up to US$725m.
BPCL is seeking a US$300m five-
year loan with a US$300m greenshoe
option, while BORL – a 50-50 joint
venture between BPCL and Oman Oil –
is sounding the market for a US$125m
three-year refinancing.
The deadlines for the RFPs were last
Friday and last Tuesday, respectively.
BPCL last closed a US$100m three-year
refinancing in October 2017 as a bilateral.
MUFG provided the loan, which is said to
pay an all-in around the mid 70s to low
80s.
BORL last raised a US$125m three-year
loan in December 2015. Mizuho Bank,Sumitomo Mitsui Banking Corp and UOB
Bank were the mandated lead arrangers
and bookrunners of the bullet facility,
which closed as a club. The deal is said to
have been mandated at below 130bp all-in
pricing.› SBI PICKS SEVEN FOR US$500M LOANSTATE BANK OF INDIA has mandated seven banks
on a five-year loan of US$500m, its fourth
borrowing of the year.
CTBC Bank, DBS Bank, HSBC, First Abu
Dhabi Bank, Sumitomo Mitsui Banking Corp,
Westpac and UOB Bank are the mandated
lead arrangers, bookrunners and equal
underwriters.
The mandated all-in pricing is said to be
around 130bp, significantly more generous
than the pricing on SBI’s US$750m three-
year loan that closed to a poor response in
July.
No lenders committed in general
syndication on that deal, which was
launched in May offering a top-level all-in
pricing of 90bp based on an interest margin
of 70bp over Libor and a 2.6-year remaining
life. Axis Bank, Barclays, Credit Agricole
CIB, First Abu Dhabi Bank, HSBC, MUFG,
SBI Capital Markets, Standard Chartered
and UOB Bank were the MLABs.
SBI’s latest borrowing is its fifth loan
since September last year when it raised
a US$750m five-year facility that paid
a top-level all-in pricing of 115.35bp
based on a margin of 105bp over LiborJaguar Land Rover revs up US$1bn loan
Loans Tata Motors unit borrows for capexJAGUAR LAND ROVER AUTOMOTIVE, a unit of Tata
Motors, has launched a US$1bn financing
into general syndication at four ticket levels
with nine banks at the top.
ANZ, Axis Bank, BNP Paribas, Credit
Agricole CIB, Citigroup, DBS Bank, First Abu
Dhabi Bank, Mizuho Bank and Standard
Chartered are the original mandated lead
arrangers and bookrunners of the new-
money deal, which was pre-funded on
October 22.
The amortising loan, which matures on
January 31 2025, pays an interest margin of
170bp over Libor and has an average life of
5.74 years.
Based on an early bird fee of 10bp, lenders
receive a top-level all-in pricing of 183.1bp
and the MLAB title for commitments of
US$75m and above via a participation fee
of 65bp, an all-in of 180.5bp and the MLAtitle for tickets of US$50m–$74m via a fee
of 50bp, or an all-in of 178.7bp and the lead
arranger title for US$25m–$49m via a fee of
40bp. Arrangers get an all-in of 176.1bp for
US$15m–$24m via a fee of 25bp.
The deadline for early bird commitments
is November 23, while the actual deadline
is December 7. Signing of the syndication
agreement is slated for mid-December.
Jaguar Land Rover Holdings and Jaguar
Land Rover are the guarantors of the facility,
which will be used for capital expenditure
and general corporate purposes.
JLR last closed a £640m loan in January
with 20 lenders joining in syndication. ANZ,
Credit Agricole, DBS, FAB, Mizuho, MUFG
and StanChart were the MLABs of that
deal. Bank of Nova Scotia, Citigroup, Export
Development Canada and Sumitomo Mitsui
Banking Corp joined the facility in seniorsyndication as MLAs, while 16 other lenders
participated in general syndication.
That loan 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 the other in July- Facility B has a bullet repayment due
in July 2022. Lenders were offered a top-level
all-in pricing of 132bp based on a blended
margin of 120.4bp and a blended remaining
average life of 4.3 years.
JLR, the holding company of the Jaguar
Land Rover business, is rated Ba2/BB
(Moody’s/S&P).
JLR is a direct, wholly owned subsidiary of
TML Holdings, which itself is wholly owned
by Tata Motors. Tata Sons, together with its
subsidiaries, held 37.27% of the voting rights
in Tata Motors as of September 30.
CHIEN MI WONG