Motherson Sumi raises euro 50mn via FCCBs

Motherson Sumi Systems has successfully raised euro 50.3 million through a foreign currency convertible bond (FCCB). Nomura International (Hong Kong) Ltd and ICICI Securities were the joint lead managers for the transaction.

The foreign currency convertible bonds will have a maturity of 5 years and will be convertible at a conversion price of Rs 111.45 per share "" a premium of 50 per cent over the closing price of the shares of the company on July 7. This is Asia's first euro denominated FCCB transaction.

S Mukherjee, CEO and Managing director, ICICI Securities, said: "The strong response to Motherson FCCB indicate investors are still willing to invest in India despite of volative global markets."

The foreign currency convertible bonds are a zero coupon instrument with a yield to maturity of 4.8 per cent per annum at the end of the tenure, if not converted into shares during this period. The bonds are expected to be listed on the Singapore Stock Exchange.