The company invited investors to submit bids earlier in the day and received offers from high-net-worth investors, family offices and domestic private credit funds, said the bankers, who requested anonymity as they are not authorized to speak to the media.
The private credit fund 360 One Asset probably arranged the issue, several bankers said.
Hinduja Group and 360 One did not immediately respond to Reuters’ requests for comment.
Cyqure India, a domestic unit of Hinduja Group, offered a yield of 14.5%, according to a term sheet seen by Reuters.
The coupon will increase by 100 basis points if the credit rating is downgraded by one notch, as stated in the term sheet. Careedge Ratings has assigned a provisional rating of BBB- to these notes. The proceeds from the bond issue of Cyqure India will be used to acquire a 25.05% stake in Reliance General Insurance and 26% in Reliance Nippon Life Insurance, Careedge said. These insurance companies, which are part of Reliance Capital, are in the process of being acquired by IndusInd Holdings International (IIHL), a holding company of the Hinduja Group.
The Reserve Bank of India took over Reliance Capital in 2021 over governance concerns at the non-bank lender after it failed to meet its payment obligations to creditors.
In February, IIHL won the bid from India’s National Company Law Tribunal to acquire Reliance Capital.
In the event that IIHL fails to obtain registration from a foreign portfolio investor within three months from the date of allotment, the coupon will be increased by 200 basis points. Once the condition is fulfilled, it will be reduced by a similar amount.
Separately, Hinduja Group is also considering a private placement of a second tranche of bond issue to raise around Rs 43 billion in the coming weeks, bankers said. The final details of this issue are still being finalised.
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