Hinduja Group entity issues high yield bonds to partly fund Reliance Cap buy

admin admin | 09-17 00:30

Private credit fund 360 One Asset has likely arranged the issue, multiple bankers said.
Cyqure India, a Hinduja Group company, raised 30 billion rupees (USD 357.76 million) through zero-coupon bonds maturing in three years and six months to partly fund acquisition of subsidiaries of Reliance Capital, two bankers told Reuters on Monday.

The company invited bids from investors earlier in the day and received bids from high-net-worth investors, family offices and domestic private credit funds, the bankers said requesting anonymity as they are not authorised to talk to the media.

Private credit fund 360 One Asset has likely arranged the issue, multiple bankers said.

Hinduja Group and 360 One did not immediately respond to Reuters' requests for comment.

Cyqure India, a subsidiary of IndusInd International Holdings (IIHL), part of Hinduja Group Holding Company offered a yield of 14.5%, according to a term sheet seen be Reuters.

The coupon will rise by 100 basis points if the credit rating slips a notch, the term sheet showed.

Careedge Ratings has assigned a BBB- provisional rating to these notes. The proceeds of the Cyqure India bond issue will be used to acquire 25.05% stake in Reliance General Insurance and 26% in Reliance Nippon Life Insurance, Careedge said.

These insurance companies, a part of Reliance Capital, are in the process of being acquired by IIHL, a Hinduja Group Holding Company.

The Reserve Bank of India took over Reliance Capital in 2021 due to governance concerns at the non-bank lender after it failed to meet its payment obligations to creditors.

In February, IIHL, won the bid under the National Company Law Tribunal of India to acquire Reliance Capital.

In case IIHL fails to procure a foreign portfolio investor registration within three months from the date of allotment, the coupon will be stepped up by 200 bps. Following the fulfilment of the condition, it will get stepped down by the similar size.

Separately, Hinduja Group is also considering a private placement of a second tranche of bond issue to raise around 43 billion rupees in coming weeks, bankers said. The final details of this issue are still getting firmed up.

Disclaimer: The copyright of this article belongs to the original author. Reposting this article is solely for the purpose of information dissemination and does not constitute any investment advice. If there is any infringement, please contact us immediately. We will make corrections or deletions as necessary. Thank you.


ALSO READ

Ola Electric responds to ARAI notice, says prices of S1 X 2 kWh scooter unchanged

Ola Electric provided an invoice dated October 6, showing a INR 5,000 discount given to customers, a...

Hyundai Motor IPO’s off to a slow start

Around 35% of the total shares in the offering are reserved for retail investors, while QIBs and NII...

Under fire, Ola Electric taps EY India to get back on track

Close to a dozen executives from EY came on-board at Ola Electric a few weeks ago on deputation for ...

Tata Motors secures 5-star BNCAP safety ratings for Nexon, Curvv, and EV models in latest crash tests

Tata Curvv.EV BNCAP testTata Motors did it again! Tata Motors has once again secured 5 star rating i...

India needs to step up manufacturing to meet Viksit Bharat goal: Volvo Grp India MD

Volvo Group India Managing Director and President, Kamal Bali. The manufacturing sector is a weak li...

Dollar pullback to help Indian rupee, weak risk appetite to weigh

Investors are now nearly certain that the U.S. Federal Reserve will deliver a 25-basis-point rate cu...