submit proposals. Proceeds will finance the
company’s acquisition of rolling stock.
IRFC’s mandate for the 10-year loan
follows another US$350m-equivalent
borrowing of the same tenor for Indian
state-owned NTPC, which is wrapping up
general syndication.
Mizuho, MUFG and SMBC are MLABs
on NTPC’s ¥39.4bn (US$350m) financing,
which pays a top-level all-in pricing of
105bp, based on an interest margin of
95bp over Tibor and a remaining weighted-
average life of 10 years.
IRFC is returning to the loan markets
after more than two years. In November
2015, it raised a three-year financing of
US$400m to refinance a five-year loan
closed in November 2013. Mizuho, MUFG
and SMBC were the MLABs.
Last December, IRFC raised US$500m
from 10-year Green dollar bonds at 3.835%.
It followed up in late February to sell
Rs25bn of three-year and one-month rupee
bonds, priced at 7.65%.
› PFC HIRES TRIO FOR NEW FACILITY
State-owned POWER FINANCE CORP has
mandated three banks on a US$250m five-
year loan even as it wraps up syndication of
a US$300m borrowing with the same tenor.
MUFG, Mizuho Bank and State Bank of India
are mandated lead arrangers, bookrunners
and equal underwriters on the new bullet
loan. The three banks are also MLABs on
the US$300m five-year bullet loan, which is
in syndication and has drawn commitments
from a handful of lenders.
That loan pays a top-level all-in pricing of
100bp, based on an interest margin of 70bp
and a 4.5-year remaining life.
PFC had sent out a request for
proposals on the new loan in late January,
a couple of weeks after putting out a
RFP for an issue of five-year Masala, or
offshore rupee, bonds. The Masala issue
proposed to raise Rs12.5bn (US$196m),
with a greenshoe option of up to Rs20bn,
according to IFR Asia.
Earlier this month, PFC raised Rs33bn
from the sale of one-year three-month
rupee notes at 7.8% in India’s domestic
bond markets, IFR Asia reported.
› REC TAKES CLUB, BILATERAL PATH
State-owned RURAL ELECTRIFICATION CORP has
raised US$400m through club and bilateral
loans.
HSBC and MUFG have provided US$240m
combined through a club loan, while
Mizuho Bank lent US$160m through a
bilateral facility. The tenor on both loans is
three years.
REC had sent out a request for proposals
in January for the loan with a February
12 deadline for responses. Banks were
required to submit bids for a minimum
US$100m.
HSBC had submitted an extremely tightly
priced bid of 71bp all-in pricing, while rival
bids had come in around 80bp.
In the end, REC took the club and
bilateral routes.
Funds refinance a US$400m five-year
loan signed in June 2015. That borrowing
paid a top-level all-in pricing of 145bp,
based on a 4.75-year average life and a
margin of 117bp over Libor. Mizuho, State
Bank of India and SMBC were mandated
lead arrangers and bookrunners of
the loan, while nine others joined in
syndication.› TWO ON BPCL UNIT'S BORROWINGBHARAT PETRORESOURCES mandated DBS Bank
and Standard Chartered on its five-year loan,
after increasing the size to US$250m.
The two banks signed the loan with the
Indian state-owned oil-and-gas company on
February 28 and prefunded it.
The borrower had sent out a request
for proposals in January for a loan of up
to US$150m, with a greenshoe option of
US$50m.
A letter of comfort from parent Bharat
Petroleum backs the loan. Funds are for
capital expenditure, debt servicing for
oil and gas blocks, as well as potential
acquisitions or investments.
Last November, the borrower, via wholly
owned unit BPRL International, raised a
US$400m dual-tranche term loan. DBS and
State Bank of India were mandated lead
arrangers and bookrunners on the loan,
which comprised a US$100m five-year
tranche A and US$300m seven-year tranche
B. A handful of other lenders joined the
loan, which had the backing of a standby
letter of credit, in syndication.EQUITY CAPITAL MARKETS
› LEMON TREE SETS IPO GOALHotel chain LEMON TREE HOTELS will raise up to
Rs10bn (US$160m) from an IPO at a price
range of Rs54–Rs56 per share, according to
a term-sheet.
The IPO will be open for subscription
on March 26–28 and will comprise 185.5m
secondary shares, down from the 196m
mentioned in the draft prospectus.
Vendor Citron’s technical inability to
tender its shares led to a smaller offer, said
people with knowledge of the plan.
The shares sold represent 23.59% of the
Lemon Tree’s capital.Warburg Pincus affiliate Maplewood
Investment, director Ravi Kant Jaipuria, RJ
Corp, Swift Builders, Whispering Resorts
and Five Star Hospitality are among
vendors of the shares.
Citic CLSA, JP Morgan and Kotak are joint
global coordinators and joint bookrunners
with Yes Securities.
Delhi-based Lemon Tree is a mid-market
chain with two main brands, Lemon Tree
and Red Fox.› JINDAL SELLS RS12BN OF SHARESJINDAL STEEL AND POWER has raised Rs12bn
from a sale of shares priced at the top of
a Rs225–Rs233 range, according to people
with knowledge of the disposal.
The sale comprised a base size of Rs9bn
and an option for an increase of Rs3bn,
which was fully exercised.
The final price represented a 0.2%
discount to the pre-deal close of Rs233.55
on the National Stock Exchange.
Around 14 investors participated and
the top five bought 90% of the shares.
Foreigners accounted for 70% of the
investors.
There is a 90-day lock-up period on the
company.
Axis Capital, JM Financial, ICICI Securities
and SBI Capital Markets were bookrunners on
the sale.› SANDHAR IPO PROVES BIG DRAWSANDHAR TECHNOLOGIES’ Rs5.1bn IPO was 6.19
times subscribed when books closed last
Wednesday.
The institutional tranche was 14.49 times
covered, the high-net-worth individual
piece 6.39 times covered and retail 1.42
times.
The IPO involved the sale of Rs3bn of
primary shares and an offer for sale of up
to 6.4m secondary shares from private-
equity firm GTI Capital at a price range of
Rs327–Rs332.
Sandhar makes components for the
automobile industry.
Axis Capital and ICICI Securities were IPO
bookrunners.› MRPL HIRES FOR SHARES SALEMANGALORE REFINERY AND PETROCHEMICALS (MRPL)
is hiring banks for a share sale of up to
Rs27bn.
Axis, Citigroup and SBI Capital are among
the banks that responded to a request for
proposals in mid-March.
The Indian state-owned petrochemical
company is looking to increase its free float
to 25% from 11.4%.
The shares will be sold through a