has initiated the procedure to borrow in dollars in
what would be its first ever foreign currency debt issuance, two
months after it appointed lead managers, two merchant bankers
said on Tuesday.
The non-banking financial company will aim to raise around
$300 million to $500 million through 3-year-and-3-month bonds
and has provided an initial price guidance of around 7.75 per cent, the
bankers added, requesting anonymity as they are not authorised
to speak to media.
Capri Global Capital did not reply to a Reuters email
seeking comment.
“Since the rush from banks to raise dollars seems to be
largely over, other firms could tap the market, especially the
ones who have completed the initial work,” one of the bankers
said.
In June, the company had appointed bankers and conducted
investor calls, but did not go ahead with the issue as pricing
was less favourable than it expected, with investors eyeing
large debt supply from better-rated Indian lenders.
Fitch Ratings has assigned the proposed dollar-denominated
senior secured bonds an expected rating of ‘BB-(EXP)’. They will
be issued as part of Capri Global’s global medium-term note
programme that has an upper limit of $1 billion.
Earlier this financial year, Managing Director Rajesh Sharma
had said the company will look to increase the share of capital
market borrowings on its books.
Banks’ $12 billion pot
The issuance comes after Indian lenders raised an aggregate
$12.15 billion through sale of dollar bonds in June-August under
the Reserve Bank of India’s discounted swap window.
ICICI Bank is the latest to tap this route,
raising $500 million through private placement at a coupon of
5.3080 per cent, according to a stock exchange notice.
The private-sector bank leads the fundraising chart with an
aggregate of $3.55 billion raised through a combination of
private placement and public issue, with a near equal division.
Private lenders dominated the fundraising cycle, accounting
for $9.15 billion or more than 75 per cent of funds raised in this
period.