CRISIL places AA+ rating on the long-term bank facilities of Syngene on 'Watch with Developing Implications'

11 Mar 2022 , 03:20 PM

Syngene International Limited updated the exchanges about the rating action of CRISIL Limited. The credit rating agency has placed its ‘CRISIL AA+’ rating on the long-term bank facilities of the Company on ‘Watch with Developing Implications’ following the rating action on the long term debt facilities of the holding Company, Biocon Ltd. The rating on the short-term bank facilities has been reaffirmed at ‘CRISIL A1+’.

Biocon Limited’s subsidiary and Syngene’s fellow subsidiary, Biocon Biologics Limited (‘BBL’) announced the acquisition of the biosimilar assets of US-based Viatris Inc. for a total consideration of USD 3.335 billion, including cash up to USD 2.335 billion and compulsorily convertible preference shares (CCPS) in BBL of USD 1 billion.

The upfront cash payment of USD 2 billion is expected to be funded by ~USD 800 million raised through equity infusion in BBL and the remainder is to be funded by debt.

CRISIL ratings will continue to monitor progress on the transaction and will remove the ratings from watch and take a final rating action once the regulatory approvals are in place and the transaction is concluded.

Towards close of trade on Friday, Syngene International Ltd was trading at Rs579.70 per piece up by Rs15.1 or 2.67% from its previous closing of Rs564.60 per piece on the BSE.