THDC India raises Rs 763 cr via 10-year bonds at 7.76% coupon

Vistra ITCL (India) Ltd was the debenture trustee for this bond issue and KFin Technologies Ltd was the registrar to the issue.

THDC India Ltd on September 11 raised Rs 763 crore through bonds maturing in 10 years, or on September 13, 2033, at 7.76 percent coupon, market sources said.

The bidding for the bond has taken place today, September 11, between 11 am and 12 pm on the BSE’s electronic bidding platform.

Market source further added that as per bidding book, the system generated cut-off for Rs 300 crore was at 7.74 percent, Rs 763 crore at 7.76 percent, and Rs 800 crore at 7.77 percent.

The company plans to utilise the proceeds from these bonds to partly meet debt requirements of ongoing and under construction projects, including recoupment of expenditure already incurred, and to refinance the existing loans, according to the issuer manual of the company.

These bonds have been rated ‘AA’ with a ‘stable’ outlook by CARE ratings and India Ratings and Research Ltd.

The company has planned to raise up to Rs 800 crore, which includes Rs 500 option to retain oversubscription.

Vistra ITCL (India) Ltd was the debenture trustee for this bond issue and KFin Technologies Ltd was the registrar to the issue.

The issuer manual further said that the bonds are proposed to be listed on the Wholesale Debt Market (WDM) segment of the BSE and NSE.

The company has said in case of default in payment of interest and/or principal redemption on the due dates, additional interest of at least at 2 percent per annum over the Coupon Rate will be payable by the issuer for the defaulting period.

Currently, the yield on the 10-year corporate bonds in the secondary market is trading in the range of 7.60-7.65 percent.

Similarly, the yield on the 10-year government securities is trading at 7.2407 percent.