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India Infradebt Limited is set to raise up to INR 15 billion through a bond issuance with a tenure of five years and six months, according to bankers involved in the transaction. The fundraising includes a base issue of INR 5 billion and a greenshoe option of INR 10 billion. The bonds will carry a coupon rate of 7.92%, with commitment bids scheduled for June 22. The issue has received AAA ratings from ICRA and CRISIL, indicating the highest level of creditworthiness. The proposed borrowing comes amid an active primary debt market, with several issuers, including Embassy Office Parks REIT, IREDA and Torrent Power, also planning bond sales in the coming days to raise funds from institutional investors.
India Infradebt Limited plans to raise up to INR 15 billion through the issuance of bonds maturing in five years and six months, with bidding for the proposed debt sale scheduled for June 22, according to bankers familiar with the development.
The infrastructure-focused non-banking finance company intends to raise INR 5 billion through the base issue and has retained an additional greenshoe option of INR 10 billion, taking the total potential fundraising size to INR 15 billion. The bonds will offer investors a coupon of 7.92%.
Bankers said the company has invited commitment bids ahead of the issuance. India Infradebt did not immediately respond to a Reuters request for comment on the proposed fundraising.
The issue has been assigned AAA ratings by ICRA and CRISIL, reflecting the highest category of credit quality. The strong ratings are expected to support demand from institutional investors, including mutual funds, insurance companies and pension funds that actively participate in highly rated corporate debt issuances.
The proposed bond sale comes at a time when several issuers are accessing the domestic debt market to secure funding. Market participants continue to monitor issuance activity as companies seek to lock in borrowing costs through fixed-income instruments across different maturities.
Among the issuers scheduled to tap the market on June 22 is Embassy Office Parks REIT, which plans to raise INR 7 billion through three-year bonds carrying a coupon of 7.49% payable quarterly. The issue has been rated AAA by CRISIL and CARE Ratings.
State-owned Indian Renewable Energy Development Agency (IREDA) is also expected to enter the market on the same day with a bond issue having a tenure of three years and six days. The company plans to raise INR 15 billion, comprising a base issue of INR 3 billion and a greenshoe option of INR 12 billion. The coupon for that issuance will be determined during the bidding process. The proposed bonds carry AAA ratings from ICRA and India Ratings.
Meanwhile, Torrent Power has lined up multiple bond offerings across four maturities, with bidding scheduled for June 23. The company plans to raise INR 7.5 billion through three-year bonds carrying a coupon of 8.10%, INR 10 billion through five-year bonds at 8.15%, INR 10 billion through seven-year bonds at 8.20%, and INR 10.5 billion through 10-year bonds also carrying a coupon of 8.20%. All the proposed issuances have been assigned AA+ ratings by CRISIL and India Ratings.
The latest transactions indicate continued activity in India's corporate bond market, with issuers across infrastructure, renewable energy, utilities and commercial real estate sectors seeking to raise long-term capital through domestic debt instruments.
Source - Reuters
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