Jain Irrigation Systems will raise USD 200 million through issuance of dollar bonds -- for the first time -- to overseas investors, primarily to retire debt.
"Our wholly-owned subsidiary Jain International Trading has priced USD 200 million 5-year senior unsecured notes offering at 7.125 per cent per annum, due February 2022," said the company in a regulatory filing.
This issue marks the successful debut of Jain Irrigation in the US dollar bond market, it said. The notes are proposed to be listed on the Singapore Stock Exchange.
"The proceeds from the issuance will be used to repay existing third-party indebtedness and for general corporate purposes," Jain Irrigation said.
The offering is scheduled to close on February 1, 2017.
Deutsche Bank and JPMorgan acted as joint global coordinators, and Deutsche Bank, JPMorgan, Barclays, Nomura and Rabobank were joint bookrunners.
The company's Netherland-based wholly-owned subsidiary Jain International Trading BV will issue the bonds.
Jain Irrigation Systems MD Anil Jain said: "We are pleased on the successful outcome of this transaction which is testimony to our business model.
"The transaction also is a reflection of our ability to raise funds from international bond arkets... The initiative is reflective of our continual efforts to diversify our investor base and reduce our financing costs." The Jalgaon-based Jain Irrigation is into manufacturing of micro-irrigation systems, PVC and HDPE pipes, plastic sheets, agro-processed products, renewable energy solutions, tissue culture plants, financial services and other agricultural inputs for the past 34 years.
The stock was trading 0.74 percent higher at Rs 94.95 on BSE at 1453 hours.
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