HOME > BUSINESS > Shapoorji Pallonji group raises Rs 2,610 cr via infrastructure bonds

Shapoorji Pallonji group raises Rs 2,610 cr via infrastructure bonds

shapoorConstruction major Shapoorji Pallonji Group has issued Rs 2,610 cr of bonds at an average price of 9.15%, making it one of the biggest asset-backed infrastructure project financing in India.

“At Rs 2,610 crores, this is among the largest private sector infrastructure bonds issued in India and is the largest bond in the roads sector,” the group said.

The issuer, SP Jammu Udhampur Highway Ltd, will be paying interest semi-annually.

“The large issuance size, the long tenor of the bond and the option to the Issuer to call back part of the bond make the pricing achieved a landmark in the corporate bond market.”

The bonds have various maturities starting Dec 2015 and ending Dec 2030, or around 15 years, making them the longest tenor infrastructure asset backed bond issued in India.

“Proceeds of the bond were used to refinance the Issuer’s existing foreign currency and rupee loans, helping the company to lower its cost of debt and importantly eliminate exchange rate risk of the foreign currency debt.”

SP Jammu Udhampur Highway Limited is a special purpose vehicle of the Shapoorji Pallonji group set up for the design, construction, development, finance, operation and maintenance of a 64.58 km highway stretch between Jammu and Udhampur awarded on a Build, Operate and Transfer (BOT) Annuity basis by the National Highways Authority of India.

“This transaction clearly establishes the viability and attractiveness of the domestic bond market as an attractive source of funding for quality infrastructure assets from credible developers. We have set a benchmark and hope this paves the way for financing of quality infrastructure assets beyond bank loans,” said S. Mukundan, Director.

“This is a marquee deal and should lead the way in financing infrastructure development in the country through debt capital markets,” said Sujata Guhathakurta, Senior Executive Vice President and Head – Debt Capital Markets, Kotak Mahindra Bank — one of the arrangers.
“The deal delivers great value to both the issuer and the investors. We believe that the debt capital markets can provide significant amount of takeout financing to banks for financing infrastructure projects, which are of upmost importance to our country. Kotak has been at the forefront of this initiative, having been one of the first to structure an NHAI Annuity-backed bond in 2010 and now having completed the largest NHAI bond issuance.”

Mr. Hitendra Dave, Managing Director and Head of Global Markets, India for HSBC said: “The deal is among the largest infrastructure project bond from the private sector.. The deal has generated excellent response from the investor community with interest from all the different investor sub categories and across both ends of the duration spectrum. At a broader level, we believe the deal will aid in the development of the domestic corporate bond market by establishing capital markets as an attractive alternative to conventional bank financing for mature infrastructure projects – a development a lot of us have been waiting for for quite a while. We expect this transaction to accelerate this development”

Follow ULTRA.news
ICICI Bank raises $500 mln via Dubai bonds ICICI Bank said it raised international debt $500 mln at an interest cost of 3.8%."The notes carry a coupon of 3.80% and were offered at an issue price of 99.728," India's second biggest private sector bank said.The sale of the 10-year bonds was done through its DIFC br...
Reliance Power awards Rs 5,000 cr Bangladesh project to Reliance Infrastructure Reliance Infrastructure Limited said it won two constructiong contracts in Bangladesh together valued at Rs. 5,000 crore.The contracts arer for creating a 750 MW LNG-based combined cycle power plant at Meghnaghat (Dhaka) while the second project is for building a 500 MMSCFD f...
NPA crisis: We’re not out of the woods yet – SBI official A senior State Bank of India official warned against assuming that the bad loan malaise affecting the Indian banking sector has started declining.Praveen Kumar Gupta, MD in charge of retail and digital banking, said one cannot directly draw conclusions by extrapolating trend...
Exchanges seek clarification from Bharti Airtel on Aadhaar misuse charges Stock exchanges in India have sought a clarification from India's largest telecom company by revenue, Bharti Airtel, on a report that it was under investigation by a government agency for allegedly misusing customer data to open bank accounts in their names."(The) exchange ha...
Infosys launches inter-bank blockchain network Infosys said it launched Finacle Trade Connect, a network-based system of distributed record keeping for banks based on the block chain technology.A blockchain-based record is open to all participants and all participants have a copy of all the data. Moreover, all transactio...
L&T gets Rs 3,572 cr worth of orders from BIAL, JSW Steel, Saudi Electricity Larsen & Toubro, India's largest construction company, said it won new orders worth Rs 3,572 crore.One of the biggest was a Rs 1,358 crore contract at the Kempegowda International Airport for the construction of a new South Parallel runway, apron and associated works on EPC ...
Yes Bank raises Rs 2,600 cr from banks in Japan, Taiwan India's fifth largest private sector bank Yes Bank said it is raising $400 Mn -- about Rs 2,600 cr -- through two five-year syndicated loans from banks in Taiwan and Japan.It will raise $250 Mn from Taiwanese banks and 16.5 Bn Yen -- about $150 Mn -- from Japan."YES BANK ...
Simplex Infra gets Rs 524 cr order from NBCC Construction company Simplex Infrastructures said it got a Rs 524 cr order from public sector company NBCC Ltd.The order is for the construction of institutional buildings at Bhubaneshwar in Orissa, the company said.NBCC (India) was earlier known as National Buildings Co...
Ahluwalia Contracts wins orders worth Rs 311 cr Ahluwalia Contracts said it won new construction orders aggregating to Rs 311 cr."New orders worth of Rs. 170.99 Crores for construction of 300 Beds hospital in existing premises of ESIC Hospital Kolkata and worth Rs.140.00 Crores for other construction work," it said.Wi...
RERA, sand scarcity, GST behind India Cements Q2 woes India Cements, the largest cement maker in South India, said its results for the September quarter were hit by GST, sand scarcity in Tamil Nadu and the impact of tougher regulation on the real estate sector.The company reported today a 62% decline in its standalone net profit ...
IDBI Bank losses narrow, NII rises 18% QoQ IDBI Bank said Net Interest Income for September quarter improved by 3.63% compared to previous year and 18.19% compared to the June quarter.Net Interest Margin (NIM) stood at 2.17% for QE Sept 2017 showing improvement of 27 basis points as compared to QE Sept 2016 and 45 ba...
AU Small Finance Bank NII up 12% in Q2 AU Small Finance Bank reported net interest income of Rs. 220 crore in the second quarter ended September, up 12% on year.Total Income was Rs 508 crore, up 41% and PAT was Rs 68 crore for Q2FY18 as against Rs 62 crore in Q1FY18."Q2 was the first full quarter of operati...
SIDBI and AU SFB to jointly lend to small businesses AU Small Finance Bank and Small Industries Development Bank of India (SIDBI) entered into an agreement to jointly lend to small businesses.Both will earmark a corpus of Rs 100 crore for lending under the ‘AU SIDBI Joint Financing Programme’ for FY18.The program will targ...
L&T wins construction orders worth Rs 3,551 cr Larsen & Toubro said its construction arm won orders worth Rs 3,551 crores.The first is a Rs 1,123 crore order from the government.The contract is for design and construction of smart trunk infrastructure with roads, storm water drains, water supply network, sewerage net...
Ramco wins multi-million managed services deal from British MNC Bank Cloud-based enterprise software provider Ramco Systems said it won a multi-million dollar order from a big British MNC financial group to provide managed payroll services.Ramco will help the company, part of the FTSE 100 index, to consolidate its payroll operations in 14 co...
MobiKwik creates wallet app for bank even as rivals focus on payments bank Wallet app provider MobiKwik announced a tie-up with IndusInd under which it has launched an app exclusively for the bank's 10 mln customers.The move is in line with the app company's strategy to be a partner and solutions provider to traditional financial services companies...
XL Catlin to buy 20% of Mahindra Insurance Brokers Mahindra Finance said global insurance major XL Group will take a 20% stake in its subsidiary Mahindra Insurance Brokers Ltd, including the 15% currently held by LeapFrog Financial Inclusion Fund."XL Group will help support MIBL’s endeavours to increase insurance awareness a...
VA TECH WABAG denies insolvency reports, to appeal order VA TECH WABAG, a construction company that focuses on water project, denied reports that it was insolvent and said it was appealing the recent order of the Chennai bench of National Company Law Tribunal.The bench, at its hearing held on 6th October 2017 has passed an order f...
Reliance Infrastructure responds to downgrade by India Ratings Reliance Infrastructure said it disagreed with the decision by India Ratings, a unit of Fitch, to downgrade its debt over delays in equity infusion and monetization of assets."The Company respectfully disagrees with the views of India Ratings," it said today."The Company...
Nucleus Software wins loan software order from Finova Capital NBFC Nucleus Software, which provides IT solutions for financial services companies, said its loan management solution has been selected by Finova Capital, a Jaipur-based Non-Banking Financial Company (NBFC) to digitise its lending business.Founded in 2015, Finova Capital offers ...