Hospitality firm Oyo Hotels & Homes has closed a debt financing round of $660 million from global institutional investors even as the country still grapples with the pandemic.
The company did not disclose names of the investors however according to sources privy to the development investors who participated in the round include Fidelity Investments, Citadel Capital Management and Varde Partners.
The company will utilise these funds to retire its past debts, strengthen the balance sheet and boost the product technology, among other things.
"Oyo is well capitalised and on the path of achieving profitability. Our two largest markets have demonstrated profitability at the slightest signs of industry recovery from the COVID-19 pandemic," said Abhishek Gupta, Group Chief Financial Officer, Oyo.
According to Oyo, the offer was oversubscribed by 1.7 times and it also received commitments of close to $1 billion from leading institutional investors.
Oyo is the first Indian company to raise capital through the TLB route. TLB refers to a tranche of senior secured syndicated credit facility from global institutional investors.
JP Morgan, Deutsche Bank, and Mizuho Securities served as the lead arrangers for this financing.
The company claims to be having over 100,000 hotel partners across 80 countries.
The development comes soon after the country's National Company Law Appellate Tribunal (NCLAT) dismissed an insolvency case against the hospitality firm. Moneycontrol reported about this on July 7.
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