However, in what is an uncommon structure for the Indian market, only foreign investors are eligible to subscribe to Data Infrastructure’s Rs 79 billion issue, the term sheet showed.
From Canada Brookfield Asset Management had said earlier this year that it would buy ATC’s Indian operations, ATC Telecom Infrastructure, for $2.5 billion through the trust.
Since this financing is done through a so-called downstream investment (when an Indian company with foreign investment buys another local company), only foreign portfolio investors are eligible to subscribe, the term sheet said.
Neither Data Infrastructure Trust nor Deutsche Bank and DBS Bank India, the arrangers of the issue, immediately responded to Reuters’ request for comment. The two series of bonds maturing in five years carry a quarterly interest rate of 9.99%, according to the term sheet. About 30% of the issue, or 23,700 crore rupees, is reserved for anchor investors. Deutsche Bank, DBS Bank, BNP Paribas, Yash Fund and Deccan Funding are the anchor investors for the first series of bonds maturing on September 9, 2029.
JP Morgan Chase Bank is the lead investor in the second series of bonds maturing on September 10, 2029, with a size of Rs 4.98 billion.
None of the major investors immediately responded to Reuters’ request for comment.
Crisil and Careedge have rated the issue as AAA and said the coupon will increase by 25 basis points for every downgrade in the rating.
In addition to the bond issue, Data Infrastructure Trust will raise funds through bank loans and capital to finance the acquisition.
Careedge said term loans in rupees and bonds worth around Rs 49 billion have already been arranged. ($1 = 83.9530 Indian rupees)
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