Separately, group company IL&FS FINANCIAL
SERVICES could not repay commercial paper
falling due on August 28, according to a BSE
filing. Although it settled the short-term
debt in full on August 31, the company will
not be able to access the CP market until
February 28, in compliance with central
bank guidelines.
› INDIABULLS ANNOUNCES COUPONS
INDIABULLS COMMERCIAL CREDIT has fixed
the price for a public issue of bonds to
raise Rs10bn, plus an option to retain
oversubscription up to Rs10bn, according to
a term-sheet.
The non-banking finance company has
fixed the coupons for qualified institutional
buyers and corporate investors at 8.8%,
8.9% and 9.1% for three, five and 10 years,
payable annually. The coupons for the
monthly option are fixed at 8.57% and
8.75% for five and 10 years.
Indiabulls has increased the coupon
by 10bp and 9bp for high-net-worth
individuals and retail investors for the
annual and monthly payout options on the
same maturities.
The effective yields for the cumulative
option for two and three years are 8.7% and
8.8% for QIBs and corporates. The yields are
10bp higher for HNI and retail investors.
The issue opens on September 11 and
closes on September 28.
The company is planning to allocate
10% of the bonds to QIBs and corporate
investors and 40% to HNI and retail clients
respectively.
Indiabulls has appointed AK Capital
Services, Axis Bank, Edelweiss Financial Services,
Trust Investment Advisors, Yes Bank and Yes
Securities as lead managers.
Proceeds will be used for lending,
financing, the repayment of the interest
and principal on existing borrowings, and
general corporate purposes.
The non-convertible debentures will
be listed on the BSE and National Stock
Exchange.
› IOB TO EXERCISE EARLY CALL
INDIAN OVERSEAS BANK has received approval
from the Reserve Bank of India to
exercise a call option on Rs6.55bn Upper
Tier 2 bonds on September 17, according
to a BSE filing.
The next call date for the notes was on
September 2023.
Icra has notched down the ratings of
the Upper Tier 2 bonds given the riskier
features. The coupon payment on Upper
Tier 2 notes is subject to the bank meeting
a Tier 1 requirement of 7%, and if the
lender posts a loss it needs approval from
the Reserve Bank of India to pay the
interest, Icra said in a note August 28.
IOB’s reported Tier 1 ratio dropped to
5.8% as of June 30, lower than the RBI’s
prescribed limit to service the coupon. The
public sector bank also posted a loss of
Rs9.19bn in the June quarter.› REC, PFC MANDATES FOR US$ BONDSRURAL ELECTRIFICATION CORP and POWER FINANCE
CORP have mandated banks for potential
offerings of US dollar bonds in 144A
format, according to a source close to the
plans.
PFC has mandated Barclays, MUFG and
Standard Charted. REC has appointed
Barclays, Citigroup, HSBC, JP Morgan, MUFG
and Standard Chartered.
The state-owned issuers had recently sent
out requests for proposals for dollar bonds.
Separately, in the onshore market,
PFC scrapped a sale of 10-year bonds on
September 4 after failing to achieve the
desired price, according to a market source.
The state-owned company received
the lowest bid at 8.57% compared with
expectations of 8.35%, the source said.
It was planning to raise Rs5bn, plus a
greenshoe option of Rs20bn.
In the first week of August, PFC raised
US$300m from a 10-year senior unsecured
bond at Treasuries plus 235bp, priced to
yield 5.25%.
In December, PFC raised US$400m from
10-year Green bonds at 3.75%, payable semi-
annually, on its first visit to the offshore
market since August 1999.
REC last visited the dollar market in
March, pricing a US$300m 4.625% 10-year
bond at Treasuries plus 200bp.
REC and PFC are yet to make official
announcements on the dollar mandates.SYNDICATED LOANS
› POWER GRID SEEKS DEBUT SAMURAIState-owned POWER GRID CORP OF INDIA is
sounding the market for a US$200m-
equivalent 12-year door-to-door Samurai,
tapping the international syndicated loan
markets for the first time.
The deadline for proposals from lenders
is October.
Power Grid is keen to gauge interest from
the Samurai market, especially for a 12-year
borrowing, given that other Indian state-
owned companies have raised similar long-
tenor facilities over the past few months.
State-owned Indian Railway Finance Corp
is in the market with a US$250m-equivalent
10-year Samurai, which was launched into
general syndication in July.Mizuho Bank, MUFG and Sumitomo
Mitsui Banking Corp are the mandated
lead arrangers and bookrunners of the
IRFC deal, which was pre-funded on March- The bullet loan pays a top-level all-in
pricing of 100bp based on an interest
Top lead managers of Indian rupee bonds
1/1/18 – 31/8/18
Amount
Name Issues Rs(m) %
1 Axis 100 445,512.7 27.8
2 HDFC 59 241,484.1 15.1
3 Trust Group 86 205,579.3 12.8
4 ICICI Bank 72 138,199.9 8.6
5 Yes Bank 26 89,452.0 5.6
6 HSBC 8 69,100.0 4.3
7 AK Capital 38 67,622.3 4.2
8 Kotak Mahindra 22 53,934.8 3.4
9 Edelweiss Financial 17 50,354.9 3.1
10 State Bank of India 18 45,194.6 2.8
Total 229 1,604,289.9
*Market volume
Proportional credit
Source: Thomson Reuters SDC Code: AS23Top bookrunners of India syndicated loans
1/1/18 – 31/8/18
Amount
Name Deals US$(m) %
1 Axis 13 1,617.1 11.9
2 Standard Chartered 15 1,336.0 9.8
3 Yes Bank 16 1,216.1 8.9
4 State Bank of India 10 1,149.5 8.5
5 L&T Financial Services 18 1,108.8 8.2
6 ICICI Bank 9 913.2 6.7
7 DBS 6 773.7 5.7
8 Indusind-Bank 15 588.9 4.3
9 MUFG 6 550.8 4.1
10 HSBC 5 463.1 3.4
Total 90 13,597.6
* Based on market of syndication and market total
Proportional credit
Source: Thomson Reuters SDC Code: S10bIndia equity and equity-related
1/1/18 – 31/8/18
Amount
Name Issues US$(m) %
1 Citigroup 14 1,952.1 12.7
2 Axis 13 1,604.2 10.5
3 Kotak Mahindra 12 1,289.9 8.4
4 Morgan Stanley 6 1,189.3 7.8
5 State Bank of India 11 1,063.6 6.9
6 JM Financial 13 768.6 5.0
7 ICICI Bank 9 702.7 4.6
8 BAML 4 638.6 4.2
9 Credit Suisse 7 584.0 3.8
10 JP Morgan 5 530.8 3.5
Total 188 15,318.2Source: Thomson Reuters SDC Code: C1L