Hindustan Petroleum Corp ltd (HPCl) announced its raise of the10-year fixed rate unsecured USD bond (Notes) amounting to USD 500 million from investors in Asia, Europe and Middle East. While the proceeds of the bond will be used to fund capital expenditure for ongoing and future domestic projects.
This is HPCl’s inaugural foray into the international bond market. The 10-year benchmark has a semi-annual coupon of 4 per cent per annum and a maturity date of July12, 2027. It offers investors a spread of 167.5 basis points over the US Treasury (UST) yield. There were orders for more than USD 3 billion with over 225 investors consisting of very high quality accounts.
Mukesh Kumar Surana, Chairman and Managing Director, HPCl said, “We are very delighted on the successful launch and completion of this transaction. The issue has been over subscribed by six times and managed to achieve a very strong price compression of 32.5bps from initial price guidance. It underscores investor’s confidence in HPCl and establishes HPCl as one of the sought-after, state-owned enterprises credit in the international bond markets.”
Citigroup, DBS Bank ltd., MUFG, SBICAP and Standard Chartered Bank acted as joint book runners and joint lead managers for the issue.