JSW Steel unit eyes Rs 9,500‑crore short‑duration debt issue, bankers say
JSW Kalinga Steel is preparing to raise approximately 95 billion rupees through its first corporate debt issuance, featuring two five-year bond tranches. The company, rated AA by Crisil, expects strong participation from mutual funds as anchor inv...
By Reuters |
Reuters
India's JSW Kalinga Steel (JKSL) is set to tap the corporate debt market with its debut shorter-duration bond issue, before the end of this month, as it embarks to raise as much as 95 billion rupees ($1.03 billion), two merchant bankers said on Monday.
The company is likely to sell two tranches of five-year tenor each, aiming to raise 60 billion rupees and 35 billion rupees, respectively, through these bond sales, the bankers added.
The notes would be zero-coupon papers and would have put and call options.
The bonds of the company are rated AA by Crisil, and the ratings also take into account the expected credit support from JKSL's two equal joint-venture partners, JSW Steel and Japan-based JFE Steel Corporation, Crisil said.
"Most of the top mutual funds have tied up as anchor investors, and the bidding should take place by the end of this week or early next week," one of the bankers quoted above said.
The bankers requested anonymity, as they are not authorised to speak to the media, while JKSL did not immediately reply to a Reuters email seeking comment.
JSW Kalinga Steel is a 100% subsidiary of Piombino Steel Ltd, which, in turn, holds a 100% shareholding in JSW Sambalpur Steel Ltd.
These entities are formed to own and operate the steel business undertaking of Bhushan Power & Steel Ltd.
($1 = 92.5100 Indian rupees)
The company is likely to sell two tranches of five-year tenor each, aiming to raise 60 billion rupees and 35 billion rupees, respectively, through these bond sales, the bankers added.
The notes would be zero-coupon papers and would have put and call options.
The bonds of the company are rated AA by Crisil, and the ratings also take into account the expected credit support from JKSL's two equal joint-venture partners, JSW Steel and Japan-based JFE Steel Corporation, Crisil said.
"Most of the top mutual funds have tied up as anchor investors, and the bidding should take place by the end of this week or early next week," one of the bankers quoted above said.
The bankers requested anonymity, as they are not authorised to speak to the media, while JKSL did not immediately reply to a Reuters email seeking comment.
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JSW Kalinga Steel is a 100% subsidiary of Piombino Steel Ltd, which, in turn, holds a 100% shareholding in JSW Sambalpur Steel Ltd.
These entities are formed to own and operate the steel business undertaking of Bhushan Power & Steel Ltd.
($1 = 92.5100 Indian rupees)
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