Ballarpur International Graphic Paper Holdings (BIGPH), a subsidiary of Ballarpur Industries today said it had raised $200 million (around Rs 895 crore) through issue of bonds in the international market.
BIGPH has issued Subordinated Perpetual Capital Securities (bonds) of $200 million which shall be listed on the Singapore Exchange, the company said in a statement.
The firm is offering the perpetual bond at 9.75% a annum, BIGPH said in a statement.
Commenting on the development Avantha Group Director – Finance B Hariharan said: "Despite an extremely challenging market backdrop, strong investor confidence that allowed us to price the transaction intra day at our desired size and price level."
The proceeds from the issue of bonds shall be used for repayment of existing debt (including repayment of profit certificates) and for capital expenditure requirements of subsidiaries of BIGPH, it added.
"The instrument has been structured to meet the strategic needs of our company and the investor response confirms their confidence in our strategic business plan," Hariharan added.
Prior the transaction, BIGPH conducted roadshows in Singapore, Hong Kong, London, Zurich and Geneva between July 28 and August 2 and met key fixed income investors, it said.
HSBC and Royal Bank of Scotland were the joint rating advisors, structurers and bookrunners to the offering, it added.
The $4 billion Avantha Group is one of India's leading business conglomerates and includes entities like BILT, Crompton Greaves among others.
