APAC Chart of the Week: 19th August 2020
Vedanta Resources Ltd’s (VRL) pricing of its USD 1.4bn 13% due-2023 bonds US time Monday (17 August) has ended a four-month hiatus in USD high-yield issuance byIndia-focused companies.
The last USD HY paper from an Indian company prior to VRL’s was the USD225m 14% due-2023s from luxury homebuilder Macrotech Developers (fka Lodha Developers) in March. No bonds were priced in 2Q20.
In 1Q20, a total of USD 3.08bn bonds were priced across eight deals, which was the second-highest quarterly tally since the start of 2013, after USD 3.5bn was recorded in 2Q19.
VRL is the only Indian company to have issued a USD HY bond so far in 3Q20. A prospective issuer, SoftBank-backed SB Energy Holdings Ltd, pulled its USD 600m deal in July, citing poor investor response.
Despite VRL’s USD 1.4bn deal, Indianissuance volumes YTD 2020 are down 26.4% at USD 4.48bn, from the USD 6.09bnregistered across 14 deals in the same period in 2019.
Anil Agarwal-controlled VRL’samortizing Reg S/144a senior secured bonds are to partly fund the resources conglomerate’s USD 3bn-plus proposed take-private of India-listed flagship Vedanta Ltd. If the take-private fails, the issuer will redeem all the notes at 101 plus accrued and unpaid interest.
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