India's IRB Infrastructure raises $540 million via dollar bonds (updated)

IRB Infrastructure Developers

01/03/2024 06:44

(Recasts paragraph 1, adds details from paragraph 2-5)
    By Bhakti Tambe
       MUMBAI, March 1 (Reuters) - India's IRB Infrastructure
Developers  IRBI.NS  has raised $540 million through
dollar-denominated bonds maturing in eight years at a 7.11%
coupon, a senior company official said on Friday. 
    The private roads and highways developer received over $2
billion in bids, reflecting an oversubscription of about four
times, with final participation from over 115 investors
worldwide. 
        The "overwhelming response" received on the issuance is
a testimony of investor confidence in the company’s commitment
towards infrastructure development, Virendra Mhaiskar, chairman
and managing director of IRB Infrastructure Developers, told
Reuters on Friday.
  
        The bond issue will enable the company to diversify and
strengthen its funding sources while establishing long-term
relationships with international capital market investors, he
added. 
  
        The issue has a weighted average life of seven years and
three months, a yield of 7.125%, with proceeds earmarked for
refinancing purposes.  
    Deutsche Bank, Barclays, Citigroup, CLSA, J.P.Morgan, and
Standard Chartered Bank were the joint bookrunners for the
issue.
    The notes are expected to be rated BB+ by Fitch and Ba2 by
Moody's. 

 (Reporting by Bhakti Tambe; Editing by Mrigank Dhaniwala and
Dhanya Ann Thoppil)
 ((Bhakti.Tambe@thomsonreuters.com; Reuters Messaging:
bhakti.rajendratambe.thomsonreuters.com@reuters.net Twiter: https://twitter.com/TambeBhakti))