Brookfield-backed Data InvIT raises nearly $1 bln in rare bond deal to fund ATC India purchase

Altius Telecom Infrastructure Trust

05/09/2024 10:02

By Bhakti Tambe
       MUMBAI, Sept 5 (Reuters) - Brookfield-backed Data
Infrastructure Trust  DATN.BO , an Indian infrastructure
investment trust (InvIT), has raised $941 million via rupee
bonds to fund the purchase of American Tower Corp's (ATC)
 AMT.N  local assets, per a term sheet seen by Reuters.
    However, in what is a rare structure for the Indian market,
only foreign investors are eligible to subscribe to Data
Infrastructure's 79-billion-rupee issue, the term sheet showed.
    Canada's Brookfield Asset Management  BAM.TO  had said at
the start of the year that it would buy ATC's India operations,
ATC Telecom Infrastructure, for $2.5 billion via the trust.
    Since this funding is via a so-called downstream investment
-- when an Indian company with foreign investment buys into
another local firm -- only foreign portfolio investors are
eligible to subscribe, the term sheet said.
    Neither Data Infrastructure Trust nor Deutsche Bank and DBS
Bank India, the arrangers for the issue, immediately responded
to Reuters' request for comment.
    The two series of bonds maturing in five years have a
quarterly interest rate of 9.99%, the term sheet showed.
    About 30% of the issue, or 23.7 billion rupees, is reserved
for anchor investors.
    Deutsche Bank, DBS Bank, BNP Paribas, Yash Fund and Deccan
Funding are the anchor investors for the first series of bonds
maturing on Sept. 9, 2029.
    JP Morgan Chase Bank is the anchor investor for the second
series of bonds maturing on Sept. 10, 2029, with a size of 4.98
billion rupees. 
    None of the anchor investors immediately replied to Reuters'
request for comments.
    Crisil and Careedge have rated the issue AAA and said the
coupon will increase by 25 basis points for every notch rating
downgrade.
    Besides the bond issue, Data Infrastructure Trust will raise
funds via bank loans and equity to fund the acquisition.
    Rupee term loans and bonds of around 49 billion rupees have
already been arranged, Careedge said.
 
 ($1 = 83.9530 Indian rupees)

 (Reporting by Bhakti Tambe; Editing by Savio D'Souza)
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