Rolta India today said its fully—owned subsidiary Rolta LLC raised $200 million through a foreign bond sale at 10.75 per cent coupon to refinance existing debt and meet working capital needs.
The five—year senior notes issue got an over subscription of two times, with demand from over 70 accounts globally, the company said in a statement.
The proceeds will also be used for general corporate purposes, it added.
So far, this year over a dozen domestic companies have raised over $9 billion in overseas debt, which is 90 per cent of what India Inc raised in the entire 2012.
However, pricing of the Rolta issue is more than double as the average rate is 4.5—5 per cent with the lowest coupon being HDFC Bank’s 3 per cent for a five—year dollar money.
Barclays, Citigroup, DBS and Deutsche Bank acted as the joint lead managers to the issue.
Commenting on the issue, company chairman and managing director KK Singh said, “We are very pleased to have set a new benchmark by successfully completing this offering, one of the first few high—yield bond issuances of its kind. We are also privileged to note the confidence that some of the world’s largest and most sophisticated investors have placed in us.”
The company said the issue was subscribed by asset managers (72 per cent), banks (10 per cent), and retail accounts (18 per cent).
The issue is guaranteed by Rolta and its subsidiaries Rolta International, Rolta Middle East, and Rolta UK, the company said.
The issue carries a BB—rating from S&P and Fitch and will be listed on the Singapore Exchange.
Shares of Rolta closed almost flat at Rs 59.90 apiece on the BSE.