INTERNATIONAL CAPITAL MARKET

rec-ltd-raises-500-mn-bonds-first-cross-border-issuance-since-covid-19

REC Ltd raises $500 Mn Bonds; first cross border issuance since COVID-19

Navratna Central PSU Rural Electrification Corporation (REC Ltd) has opened up the USD markets for Indian issuers in the wake of COVID-19 crisis. With the global lockdown fears receding and liquidity coming back to the Asian markets, REC pulled the trigger and tapped the offshore debt markets on May 12, 2020 making it the first issuer from India since March 5, 2020.

 

The paper was strongly received by investors, with books rapidly crossing $ bn across Asia and Europe. US investors too came in strongly, with REC finally receiving subscription of more than 5 times the actual issue size, through 175 investors. The strong investor demand saw the issuance being upsized from the base size of 300m to 500m. The 3-year issuance was priced at a coupon of 4.75%.

 

The REC paper saw demand from high-quality long term investors and large global fund houses. Asia took the largest allocation at 68%, Europe Middle East & Africa (EMEA) 19%, and US at 13%. In terms of investor type, Fund Managers were allocated 52%, Insurance/PF 23%, Banks 16% and Private Banks 9%. Given the high demand, the issuance priced at nil New Issue Premium (NIP), comparing favorably to other global bond issuers who have had to pay significantly more NIP in recent deals.

 

Ajeet Kumar Agarwal, Chairman and Managing Director, REC Ltd said: “REC has effectively opened up the offshore debt market for other Indian credits to tap into. The strong reception to this deal demonstrates both resilience of the Indian economy among International investors and the high regard for REC’s credit quality.”

13 May 2020
pcf-raises-$1-bn-in-one-go;-first-usd-issuance-in-05-yr-tenor

PCF raises $1 bn in one go; first USD issuance in 05 yr tenor

PFC, a Government owned NBFC has successfully tapped international market and raised USD 1 billion through Reg- S bonds in one go. This was the PFC's first issuance in the international market after successful acquisition of Government of India holding in REC.

 

The issuance attracted a strong and diversified order book indicating investor's confidence towards PFC's differentiated credit despite volatile market conditions and concerns over Indian NBFI sector.

 

The USD 1 billion Reg- S transaction was executed through two tranches. The 5 year tranche for USD 400 million @3.87% at a reoffer spread of 195 bps over 5 year UST and 10 year tranche for USD 600 million @4.577% at a reoffer spread of 242.5 bps over 10 year UST.

 

Commenting on the occasion, Chairman and Managing Director of PFC Rajeev Sharma stated that the transaction establishes PFC status as leading NBFI in India having priced its first dual and largest USD bonds transaction for Government owned Indian NBFC. This is also PFC's first USD issuance in the 5 year tenor. The successful completion of the deal underscores investor's continued confidence in PFC post acquisition of REC.

12 Jun 2019
rec-ltd-raises-500-mn-bonds-first-cross-border-issuance-since-covid-19

REC Ltd raises $500 Mn Bonds; first cross border issuance since COVID-19

By IndianMandarins 13 May 2020

Navratna Central PSU Rural Electrification Corporation (REC Ltd) has opened up the USD markets for Indian issuers in the wake of COVID-19 crisis. With the global lockdown fears receding and liquidity coming back to the Asian markets, REC pulled the trigger and tapped the offshore debt markets on May 12, 2020 making it the first issuer from India since March 5, 2020.

 

The paper was strongly received by investors, with books rapidly crossing $ bn across Asia and Europe. US investors too came in strongly, with REC finally receiving subscription of more than 5 times the actual issue size, through 175 investors. The strong investor demand saw the issuance being upsized from the base size of 300m to 500m. The 3-year issuance was priced at a coupon of 4.75%.

 

The REC paper saw demand from high-quality long term investors and large global fund houses. Asia took the largest allocation at 68%, Europe Middle East & Africa (EMEA) 19%, and US at 13%. In terms of investor type, Fund Managers were allocated 52%, Insurance/PF 23%, Banks 16% and Private Banks 9%. Given the high demand, the issuance priced at nil New Issue Premium (NIP), comparing favorably to other global bond issuers who have had to pay significantly more NIP in recent deals.

 

Ajeet Kumar Agarwal, Chairman and Managing Director, REC Ltd said: “REC has effectively opened up the offshore debt market for other Indian credits to tap into. The strong reception to this deal demonstrates both resilience of the Indian economy among International investors and the high regard for REC’s credit quality.”

pcf-raises-$1-bn-in-one-go;-first-usd-issuance-in-05-yr-tenor

PCF raises $1 bn in one go; first USD issuance in 05 yr tenor

By IndianMandarins 12 Jun 2019

PFC, a Government owned NBFC has successfully tapped international market and raised USD 1 billion through Reg- S bonds in one go. This was the PFC's first issuance in the international market after successful acquisition of Government of India holding in REC.

 

The issuance attracted a strong and diversified order book indicating investor's confidence towards PFC's differentiated credit despite volatile market conditions and concerns over Indian NBFI sector.

 

The USD 1 billion Reg- S transaction was executed through two tranches. The 5 year tranche for USD 400 million @3.87% at a reoffer spread of 195 bps over 5 year UST and 10 year tranche for USD 600 million @4.577% at a reoffer spread of 242.5 bps over 10 year UST.

 

Commenting on the occasion, Chairman and Managing Director of PFC Rajeev Sharma stated that the transaction establishes PFC status as leading NBFI in India having priced its first dual and largest USD bonds transaction for Government owned Indian NBFC. This is also PFC's first USD issuance in the 5 year tenor. The successful completion of the deal underscores investor's continued confidence in PFC post acquisition of REC.

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