GIC, Goldman, others line up for JSW arm’s $707-m bonds
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The company is said to have lowered the funding cost from its initial guidance pegged at 4.5 percent, with 10-year maturity.
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Sajjan Jindal-controlled JSW Energy is planning to raise up to $1 billion in a maiden dollar bond sale, ET reported on March 25.
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MUMBAI:
GIC, Goldman Sachs, China Asset Management, FIL Investment (Fidelity), UBS and Schroder Investment are among the bidders for JSW Hydro Energy’s $750-million overseas green bond sale that drew offers more than four times the target, market sources told ET.
The company is said to have lowered the funding cost from its initial guidance pegged at 4.5 percent, with 10-year maturity. Those bonds likely yielded at 4.125 in the primary sale, about 38 basis points lower, dealers said. The widow for subscription was not yet closed until the publication of this report.
JSW Hydro Energy’s debut green bond issue was subscribed 4x and closed at a much lower rate than initially guided, on Monday. Its $707-million 10-year green bond saw a fair amount of investor interest, even as foreign investors cut down their overall positions on Indian debt. The initial price guidance was at 4.5 per cent but finally closed at 4.125 per cent, said market sources. Majority of subscribers are high-quality long-only investors, according to them. Deutsche Bank was the lead banker on the issue. Other banks included Standard Chartered, JP Morgan and Barclays. “The extremely strong response to the issue, especially in the current environment, is testament to the quality of the issuer and the confidence that overseas investors continue to repose in high-quality issuances out of India,” said Amrish Baliga, managing director of Deutsche Bank.
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Mumbai: JSW Steel raised $250 million by selling bonds overseas. The bond sale is an extension to its earlier issuance in October, when the steel maker raised $500 million.
The bonds, which opened for subscriptions Monday likely obtained an order book, three times higher than the actual size. Standard Chartered, Deutsche Bank, Credit Suisse helped the company mopping up the funds.
Real money investors put in bids amounting to around $1 Billion chasing US$ 250 million on similar terms & price, bankers said. Notwithstanding the pandemic it’s a huge testament to the credit quality of JSW, said Amrish Baliga, managing director at Deutsche Bank India. Those bonds offered 4.509 percent with five-year maturity.