A total of 40 investors participated in the final issuance, with 92% of the funds raised from Asia and 8% from EMEA
FinTech BizNews Service
Mumbai, October 4, 2024: Piramal Capital & Housing Finance Limited (Piramal Finance), a leading diversified financial services company and wholly owned subsidiary of Piramal Enterprises Limited (PEL), has successfully priced the tap issuance of its inaugural US dollar bond issued in July this year to raise additional USD 150 million from international capital markets. The bonds will be issued at a yield of 7.078% (vs 7.950% in the case of the original issuance in July 24) for the remaining tenor of c. 3.32 years. demonstrating strong investor confidence post the company's maiden issuance.
The high-quality order book and strong demand allowed the company to upsize by USD 50m for a final issuance size of USD 150m. In July 2024, Piramal Finance made a debut in International Bond Markets with a USD 300 Mn Sustainability Bond issuance. This tap transaction further diversifies Piramal Finance’s borrowing profile while reaffirming strong demand from high-quality investors.
For this $150 million tap issue, the final orderbook received was over $520 million depicting c. 3.5 times of oversubscription, with the order book peaking over $600 million ahead of the release of final pricing guidance. A total of 40 investors participated in the final issuance, with 92% of the funds raised from Asia and 8% from EMEA. The deal attracted high-quality demand, with 95% of funds raised from asset managers, 5% from others including banks and private banks.
Mr. Jairam Sridharan, Managing Director, Piramal Capital & Housing Finance Ltd, said, “We are pleased with the confidence global investors have placed in our business. As one of India’s leading NBFCs, we are committed to expanding our presence in Tier 2 and Tier 3 cities while targeting 10–12% of our borrowing from international sources over the next 2-3 years. India offers an exciting investment landscape, and we are delighted to provide global investors the opportunity to participate in the nation’s growth journey. At the same time, we remain focused on promoting sustainable development and enhancing credit access for a vast number of underserved citizens across the country.”
The Sustainability Bond issuance is guided by PEL’s Sustainable Finance Framework, which is aligned to the ICMA Social Bond Principles. Proceeds are expected to fund impactful social projects, including affordable housing, MSME business loans, priority sector loans, microfinance, and other eligible products. Standard Chartered Bank, Barclays, and Deutsche Bank acted as Joint Global Coordinators and Joint Bookrunners for this transaction.
