JSW Infrastructure has raised $400 million through secured sustainability-linked bond with 7 year tenor at 4.950 per cent.
The proceeds will be used to repay existing debt of the company and its subsidiaries.
The fund raise marked the company’s debut bond issue and the first sustainability-linked bond from an Indian ports company.
The company engaged with multiple investors during the deal roadshow during last one week across Asia, Europe and US.
Backed by strong investor feedback, the transaction was launched with an initial price guidance of 5.250 per cent. Subsequently supported by robust interest from high quality real money investors, the company was able to tighten pricing by 30 basis points to 4.950 per cent, despite yield widening in the high yield bond markets.
Arun Maheshwari, Joint Managing Director & CEO, JSW Infrastructure said the fund raise will help to realign capital structure and bring in more funding efficiency in the coming years.
Lalit Singhvi, Executive Director & CFO, JSW Infrastructure said the bond issue will enable to further diversify and strengthen sources of funding and optimise capital structure.
The deal received strong response from investors globally, resulting in the order book to peak at over $1.35 billion with final order book in excess of $1.13 billion with an oversubscription of over 3 times. The transaction witnessed 46 per cent participation from Asia, 30 per cent from Europe and 24 per cent from US.
JSW Infrastructure is ranked among the top five port companies in India and has an operational capacity of 173.2 mtpa with nine ports and terminals.