Samvardhana Motherson raises USD 350 mn via bonds

Auto parts maker Samvardhana Motherson International has raised USD 350 million by selling five-year bonds to overseas investors. The issue was priced late Wednesday. The bonds were sold by a subsidiary, SMRC Automotive Holdings Netherlands, and are priced at 140 basis points above the five-year US treasury, currently trading at about 4.30%. After taking into account the costs, the bond was priced at a yield of 5.72%.

The funds will be used to refinance Motherson's existing debt maturing later this month, people familiar with the details said.

"The final pricing of the bonds is tighter than the initial guidance of 175 bps above the five-year US treasury. The total order book for the issue was USD 2.20 billion which allowed the company to price its bonds inside the guidance," said a person aware of the issue.

JP Morgan, MUFG, DBS Bank and BNP Paribas are among the bankers to the issue. Individual banks could not be contacted.

The company did not respond to ET's email seeking comment.

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