Samvardhana Motherson plans to raise $500 million via overseas bond

20 Jul 2023 , 10:53 AM

Samvardhana Motherson International (SAMIL) plans to obtain capital by selling overseas bonds. The company is assessing investor interest in order to raise more than $500 million in euro, dollar, or yuan-denominated bonds for expansion and capital investment.

According to two sources, the business hired HSBC to reach out to investors in a non-deal roadshow earlier this week, and it may contemplate issuing offshore bonds in the second half of the fiscal year.

The company has not yet finalized the size, pricing, and tenor. 

The corporation intends to borrow short-term finances from banks and long-term capital from bonds. The two outstanding bonds have durations of seven and ten years and will be due in 2024 and 2025, respectively.

The bond will be valid for more than 5 years. While the exact size is yet to be determined, it is expected to raise roughly $500 million. The group currently has two bonds outstanding: $300 million due in July 2024 and $100 million due in June 2025. 

The $300 million 1.8% bond due in 2024 is selling at 96 cents with a 6% yield, while the $100 million 3.7% bond due in 2025 is trading at 93 cents with a 7.47% yield.

At around 10.52 AM, Samvardhana Motherson was trading 0.26% lower at Rs 95.95, against the previous close of Rs 96.20 on NSE.

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