Elder Pharma to raise Rs 1.05b via bonds: Sources

Indian drugmaker Elder Pharmaceuticals plans to raise Rs 1.05 billion through seven -year bonds at 11.25%, two sources with direct knowledge of the deal told Reuters.

The bond features repayments in 10 equal semi-annual instalments commencing two years after the issue date, the sources said. Proceeds from the secured non-convertible debenture issue will refinance existing higher cost debt, a senior company source told Reuters. Typically, long term debt comes at 12.5% to 13.5%, he added. Almondz Global Securities is the sole arranger of the deal.