COUNTRY REPORT INDIAmargin of 80bp over yen Libor and a 9.5-
year remaining life.
The pricing on IRFC’s loan is tighter than
that on a ¥39.42bn 10-year Samurai loan
for state-owned NTPC, which closed in
early April. Mizuho, MUFG and SMBC were
the MLABs of the NTPC loan, which paid a
top-level all-in pricing of 105bp based on a
margin of 95bp over Tibor and a weighted
average remaining life of 10 years. Eight
other Japanese banks joined the deal in
general syndication.
Power Grid, a regular borrower in the
Indian bond market, is rated BBB–/BBB–
(S&P/Fitch), while IRFC and NTPC are rated
Baa2/BBB–/BBB–.
Power Grid last sold Rs30.6bn (US$480m)
of 10-year bonds at 7.2% in August 2017,
IFRAsia reported.
› JSW STEEL BUY LOAN PAYS 230BP ALL-IN
Mumbai-based JSW STEEL is paying a top-
level all-in pricing of 225bp–230bp on its
US$140m loan that funds the acquisition of
US-based Acero Junction Holdings.
Axis Bank is the sole bookrunner of the
borrowing, which comprises a US$125m
five-year term loan and a US$15m revolving
credit facility.
Axis is only syndicating the term loan,
which pays an interest margin of 210bp
over Libor and has a four-year average life.
The Indian bank, which has already
pre-funded the financing, is inviting other
lenders at three ticket levels: mandated
lead arrangers with US$30m or above,
lead arrangers with US$15m–$30m and
arrangers with less than US$15m.
Drawdown of the term loan has already
taken place.
Proceeds will refinance debt at US-
based Acero Junction, in which JSW
Steel has already acquired an 83% stake
since announcing the deal in March.
The Indian steelmaker is in the process
of buying the remaining 17%. The deal
gives Acero Junction an enterprise value
of US$182.41m, with equity value of
US$80.85m and liabilities of US$101.56m.
Acero Junction has been renamed JSW
Steel USA Ohio Inc, which is the borrower
on the loan. Assets of JSW Ohio will form
the security on the loan, while JSW Steel is
the guarantor.
JSW Steel’s most recent borrowing in the
offshore loan markets was in March when
it obtained US$140m and ¥11bn (US$104m)
credit facilities from Japan Bank for
International Cooperation and commercial
banks.
JSW Steel is an integrated steel company
with an installed steel-making capacity of
18 MTPA. It is part of the US$13bn JSW
Group, which is engaged in steel, energy,
infrastructure, cement, ventures and sports.
Japan’s JFE Steel Corp owns a 15% stake in
JSW Steel.› THREE COMMIT TO HDFC'S US$750M LOANThree banks have submitted commitments
to mortgage lender HOUSING DEVELOPMENT
FINANCE CORP’s US$750m five-year loan.
A few more lenders are expected to join
the deal, which will close soon.
ANZ, Barclays, Citigroup, DBS Bank, First
Abu Dhabi Bank, HSBC, Mizuho Bank, MUFG
and Sumitomo Mitsui Banking Corp are the
mandated lead arrangers and bookrunners
of the bullet loan, which was pre-funded by
the nine leads. United Overseas Bank joined
in senior syndication as MLAB.
The transaction pays a top-level all-in
pricing of 115bp based on an interest
margin of 100bp over Libor and an average
life of 4.88 years.
The borrower’s last visit to the
international loan market was in July 2016
for a US$375m five-year term loan with
17 banks, of which 13 joined in general
syndication. Citigroup, DBS, State Bank of
India and SMBC were the MLABs of that
deal, which paid a top-level all-in pricing of
139.9bp based on a margin of 126bp over
Libor and an average remaining life of 4.82
years.EQUITY CAPITAL MARKETS
› L&T SELLS SHARES IN UNITLarsen & Toubro has raised Rs18bn
(US$252m) through the sale of 10.5m LARSEN
& TOUBRO INFOTECH shares at a floor price of
Rs1,700.
The transaction comprised a base deal
of 5.9m shares with an upsize option of
4.6m shares that was fully exercised. The
institutional tranche was subscribed 318%
and the retail tranche 155%, data on the
BSE shows.
The base deal and the upsize option
represent 6.08% of the unit’s share capital.
The floor price was at a 5.4% discount to
the pre-deal close of Rs1,797.75.
L&T, which owns 81.08% of the
information technology company, is selling
the shares to increase the free float. L&T
Infotech’s current free float is 17%, which
has to be raised to 25% by 2019 to meet
stock market regulations. L&T Infotech
shares are up 69% year to date.
Axis Capital, Citigroup, Goldman Sachs, HSBC
Securities, JM Financial and Motilal Oswal were
the banks on the transaction.
Last month, L&T sold shares in L&T
Technology Services for Rs9.2bn to increase
the free float.› VECTUS, MILLTEC PLAN IPO LAUNCHES
VECTUS INDUSTRIES and MILLTEC MACHINERY are
targeting the launch of their respective
IPOs of Rs4.5bn and Rs3bn in October
having obtained regulatory approval,
people with knowledge of the transaction
said.
The Vectus IPO will involve the sale of
Rs850m primary shares and secondary
shares of 3.9m. Founders Ashish Baheti
and Atul Ladha and investor Latinia are the
vendors of the secondary shares.
The plastic tank and pipe maker reported
a net profit of Rs312m in the financial year
that ended March 31 2018 versus Rs252m
in 2017.
Edelweiss, ICICI Securities and IDFC are the
bookrunners.
In the Milltec IPO, around 3.75m
secondary shares, or 37.5% of the capital,
will be sold. The vendors are controlling
shareholders Rajendran Joghee,
Ravindranath Ramaiah, Manjula Rajendran
and Uma Rachappa and investor Multiple
Private Equity Fund.
The agriculture equipment manufacturer
earned a net profit of Rs305m in the
financial year that ended March 31 2018
versus Rs206m in 2017.
Motilal Oswal and IIFL Holdings are the
bookrunners.› IRCON SETS PRICE RANGE FOR IPOState-owned railway infrastructure
engineering and construction company
IRCON INTERNATIONAL is targeting raising up to
Rs4.7bn, having set a price range of Rs470–
Rs475 for its IPO.
In a public notice, the company said the
IPO will be open for subscription between
September 17 and September 19.
The government of India, which owns
100% of the company, is selling 9.9m
shares, or a 10.5% stake, in the IPO.
Ircon earned a profit before tax of
Rs5.6bn in the financial year that ended
on March 31 2017, versus Rs6.1bn in
2016.
Axis, IDBI Capital and SBI Capital Markets
are the bookrunners.Follow IFR Asia
@IFRAsia