STOCK MARKET BSE NSE

JSW Infra raises USD 400 million in maiden international bond sale

The money raised in the issue by JSW Infrastructure will be used to repay the existing debt of the company and its subsidiaries.

Published: 14th January 2022 12:51 PM  |   Last Updated: 14th January 2022 12:51 PM   |  A+A-

JSW headquarters in Mumbai

JSW headquarters in Mumbai. (File Photo)

By PTI

MUMBAI: Sajjan Jindal-led JSW Group's port development arm on Friday announced a USD 400 million fundraise through a bond issue from international investors.

The money raised in the issue by JSW Infrastructure will be used to repay the existing debt of the company and its subsidiaries.

The issue of the sustainability linked bond (SLB) is its debut issue in international bond markets, and the company could manage final pricing, which was lower than the guidance, as per an official statement.

The seven-year notes were launched with initial guidance on the coupon at 5.25 per cent, but the company managed to get final pricing at 4.95 per cent, it said.

Investor roadshows for the issue were held across Asia, Europe and the US this week and the transaction was launched after the strong investor feedback, and the pricing could be tightened despite widening of yields in the high yield bond markets.

The order book peaked at USD 1.35 billion, and the final order book was over USD 1.13 billion, the statement said, adding the transaction witnessed nearly half of the subscriptions from Asian investors, 30 per cent from Europe and the rest from the US.

From an investor type perspective, 92 per cent were funds, private banks constituted 6 per cent and 2 per cent were banks and other entities.

The bond issue will help realign the capital structure and bring more funding efficiency in the coming years, its joint managing director and chief executive Arun Maheshwari said.

The company's executive director and chief financial officer Lalit Singhvi elaborated that the bond issue will further diversify and strengthen the sources of funding.



Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp