Lynch, DBS Bank, Industrial and Commercial
Bank of China (Asia) and Sumitomo Mitsui
Banking Corp.
Tata Power’s subsidiary, KHOPOLI
INVESTMENTS, is the borrower.
Funds are to refinance the remaining
outstanding from a US$305m three-year
loan completed in December 2015. ANZ,
BAML, DBS, JP Morgan, Standard Chartered
and SMBC were the MLABs on that facility,
which paid a top-level all-in pricing of
143.92bp based on a margin of 126bp over
Libor and a 50bp fee.
Tata Power last tapped the loan market
via its subsidiary Bhira Investments with a
US$460m five-year loan. ANZ, Axis Bank,
BAML, DBS, Export Development Canada,
ICBC (Asia), National Bank of Abu Dhabi
and Sumitomo Mitsui Banking Corp were
MLABs on that loan, which offered a top
level all-in pricing of 208bp based on an
interest margin of 195bp over Libor and a
62.8bp fee.
› HDFC ATTRACTS MORE LENDERS
Eight banks have submitted commitments
exceeding US$190m so far to mortgage
lender HOUSING DEVELOPMENT FINANCE CORP’s
US$750m five-year loan.
Three more banks are still in the process
of getting approvals to join the deal, which
will close at the end of next week. Signing is
slated for end-September or early October.
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.
› YES BANK ATTRACTS FOUR
YES BANK has closed syndication of its
US$400m three-year loan after attracting
four banks in general syndication,
according to a press release from the
Mumbai-listed lender.
Landesbank Baden-Wurttemberg joined as
mandated lead arranger, while Export-Import
Bank of the Republic of China, First Commercial
Bank and Sunny Bank came in as arrangers.
Allocations are being finalised.
BayernLB, Commerzbank, CTBC Bank, First
Abu Dhabi Bank, Korea Development Bank,
State Bank of India, United Overseas Bank and
Westpac Banking Corp are the mandated
lead arrangers and bookrunners of the
financing, which paid a top-level all-in
pricing of 114.48bp based on an interest
margin of 95bp over Libor and an average
life of 2.67 years.
The pricing was richer than what Yes
Bank paid on a US$300m three-year loan,
which closed in July after a six-month
syndication. MLABs HSBC, Standard
Chartered and Westpac had launched the
deal offering a top-level all-in pricing of
105bp based on an interest margin of 80bp.
Five banks joined in general syndication,
which was launched in January.
Yes Bank, rated Baa3 by Moody’s, is
India’s fourth-largest private sector bank in
terms of assets.EQUITY CAPITAL MARKETS
› PAYTM DOWNPLAYS IPO PLANSIndian payments company PAYTM is unlikely
to go public in the next three to four years,
founder Vijay Shekhar Sharma has said.
“We are well capitalised for the next
few years,” Sharma said at the Asia PE-VC
Summit 2018 organised by DealStreetAsia.
Paytm, founded by Sharma in 2010,
counts SoftBank, Alibaba Group and
its financial services arm Ant Financial
Services Group among its investors.
Last month, Warren Buffett’s Berkshire
Hathaway invested US$356m in One97
Communications, the parent of Paytm.
One97 had planned a Rs1.2bn (US$16m)
IPO in 2010 but shelved it on weak market
conditions.
The payment company has also entered
the e-commerce business and is now selling
mutual funds and gold through an app.
Sharma said the company plans to
launch its payment services in the US.
Currently it runs payment services in
Canada and Japan. Sharma said Canada
was the template to expand further into
North America and Japan to expand in non-
English-speaking markets.
He said India’s demonetisation in 2016
had been an “inflection moment” for the
company. “It gave us the business that
would have otherwise taken two years to
achieve.”
The shortage of cash as a result of
demonetisation forced many vendors to
accept payment through Paytm and other
electronic wallets.› LODHA DEVELOPERS PUTS IPO ON HOLDLODHA DEVELOPERS has put its IPO on hold
because of weak market conditions, people
with knowledge of the transaction said.
The company was planning to launch
a smaller than originally planned IPO in
the third week of September, subject to
investor interest.
“There is no official timetable but the
issue will not happen in the next few
months,” a banker on the transaction said.
In the draft prospectus, the company said
it planned to raise Rs37.5bn from primary
shares, while the Mangal Prabhat Lodha
family would sell 18 million secondary
shares. Bankers were expecting the
secondary share tranche to be cut.
Although the benchmark S&P BSE Sensex
index is up 10% so far this year, the broad
market is weak, with the Nifty Midcap 100
down 11%. The Sensex comprises the top
30 stocks by market capitalisation. The
fall of the rupee against the US dollar has
also kept foreign investors away. “Foreign
investors want the rupee to stabilise before
making any major investments,” a second
banker on the deal said.
CLSA, JM Financial, Kotak and Morgan
Stanley are the joint global coordinators and
bookrunners with BOB Capital, Edelweiss, HDFC,
ICICI Securities, IIFL, UBS and Yes Securities.
The Indian property company had planned
an IPO of Rs28bn in 2010, but did not launch
because of weak market conditions.
Citigroup, Enam, CLSA, Credit Suisse, JP
Morgan, Kotak, Nomura, SBI Capital and
Global TrustCapital were the bookrunners
then.
Founded in 1980, the company has 37
ongoing projects in London, Mumbai and
Pune. It has a land bank of over 4,450 acres.
Lodha reported sales of Rs55bn in the nine
months that ended on December 30 2017.› GARDEN REACH SETS IPO PRICE RANGEState-owned GARDEN REACH SHIPBUILDERS &
ENGINEERS plans to raise up to Rs3.4bn
through an IPO having fixed a price range
of Rs115–Rs118 a share.
In a public notice, the company said the
Indian government will sell 29.2m shares,
or a 25.5% stake. The IPO will be open for
subscription between September 24 and
September 26.
The top of the price range implies a 2018
P/E multiple of 16.53.
Garden Reach earned a net profit of
Rs122m in 2017 versus Rs1.62bn in 2016. In
its annual report, the company said its net
profit fell because of a delay in the delivery
of ships.
IDBI Capital and Yes Securities are the
bookrunners.