Post-Brexit, HT Global mops up $300 million at lower cost

MUMBAI: Baring Private Equity-owned HT Global Solutions has raised $300 million by selling offshore bonds, the first such deal after Britons voted to exit the European Union, triggering wild swings across global markets.

The company, which will use the proceeds to acquire a majority in India-listed Hexaware Technologies, has gained from globally falling bond yields as it managed to lower the borrowing cost by 50 bps. A basis point is one hundredth of a percentage point.

With five-year maturity, the bonds yielded 7.125 per cent, 50 basis points lower than the level expected initially before the issue opened for subscription, two dealers told ET. The bonds have a call option, which allows the seller to partially withdraw it from investors at the end of second, third and fourth years, said one of the persons cited above.

Big advantage The company received more than six times over subsription at $1.9 billion, but chose to retain only the actual quantum decided earlier.

“It is a combination of India play and right private equity backing (Baring), which has helped us to get an outstanding response amid global uncertainties prevailing across markets,” said Amrish Baliga, head -structured origination, Deusche Bank India.

“Many quality investors have invested in these bonds as they found yields attractive.” Deutsche Bank was one of the joint global investment bankers on the transaction.

Three rating companies including, Moody’s, S&P Global and Fitch have graded the securities as Ba3 (Stable), BB-(Stable), and BB- (Stable), two notches less than the