Manappuram Finance Ltd., has raised US$ 300 million through senior secured fixed rate notes issuance for a 3-year tenor. The issue was placed with a coupon of 5.90 percent.
This is the first such issuance by the Company in the global bond market, holding investors in Asia and Europe, Middle East and Africa (EMEA). The proceeds of the issue will be utilised for onward lending and other activities as okayed by the RBI and extant guidelines for external commercial borrowings.
Prior to this, the company had extensively engaged with the investors during a roadshow across Singapore, Hong Kong, and London. Followed by strong investor interest, the issue was launched with initial price guidance of about 6.25 percent. However, in sync with the exceptional interest shown by over a hundred high-quality investors, the final order book exceeded US$ 1.15 billion and the company was able to tighten the pricing to 5.90 percent.
The firm offers were allocated majorly to asset and fund managers (87 percent), with private bankers (8 percent) and banks (5 percent) taking up the rest. Geographically, 76 percent was allocated to accounts in Asia and 24 percent to accounts in EMEA. The bonds will list on International Securities Market of the Singapore Exchange Securities Trading Limited (“SGX-ST”).
Manappuram Finance Ltd. had obtained long term foreign-currency and local currency issuer credit rating of ‘BB-’ with ‘Stable’ outlook from Fitch Ratings and long term issuer credit rating of ‘BB-‘ with ‘Stable’ outlook from S&P Global Ratings.
In a statement released to the media, V.P. Nandakumar, MD&CEO, said “The overwhelming response from international investors and the attractive pricing in times of global uncertainty, is once again a reaffirmation of the fundamental strength of our business model. The success of the issue and its attractive pricing enables us to further diversify our funding sources. We look forward to a sustainable and mutually beneficial long-term partnership with our global bond investors.”
UBS AG Singapore Branch (“UBS”) acted as Global Coordinator. UBS and Barclays Bank PLC acted as Joint Book Runner for the issue.