Rolta India raises $300 m via overseas bonds

IT solutions provider Rolta India on Friday announced that it has raised $300 million through its issue of senior notes with a coupon rate of 8.875%via its wholly owned US subsidiary. The bonds have a maturity period of five years.

The bonds carried a rating of BB- by global ratings agencies Standard and Poor's and Fitch. The issue attracted over 200 investors, according to a release by Rolta on the Bombay Stock Exchange, with asset managers buying 79% of the bonds followed by banks at 12%.

Geographically, the issue saw the highest demand in Asia (47%) followed by the US (35%), while European investors accounted for 18% of the demand.

The notes will be listed on the Singapore Stock Exchange. The lead arrangers for the issue were Barclays and Citigroup. The proceeds of the notes will be used to refinance debt, meet working capital needs and for general corporate purposes, Rolta said in a statement.

“It is gratifying that Rolta's business model and its IP-led solutions approach have inspired confidence in some of the world's largest and most sophistcated investors,” company chairman & chief executive officer KK Singh said in the release.

In May 2013, Rolta India had raised $200 million through five-year notes via the overseas bond route at a 10.75% coupon rate. The issue was subscribed two times, with demand from over 70 accounts globally.

Earlier this month, ONGC Videsh raised $2.23 billion through an issue of dual-currency foreign bonds, the largest offshore issue so far this year. ONGC raised the money through three equal tranches of five-year US dollar bond, 10-year US dollar bond and seven-year euro bond. Bankers to the issue said the order book for the issue was over $8 billion.

The five-year US dollar bond was priced at 160 basis points over benchmark US treasury, while the 10-year US dollar bond was priced at 207.5 bps above the benchmark.

The seven-year euro bond was priced at 180 bps over mid-swaps.

Source : Financial Express