JP Morgan, HDFC MF grab IL&FS arm Andhra Pradesh Expressway bond sale
US brokerage JP Morgan picked up bonds worth around Rs 160 crore after fully subscribing to the Rs 530-crore bond issue initially, JP Morgan India debt markets head Madhur Agarwal said.
The issue was fully subscribed by JP Morgan which in turn has sold 70-75 per cent of the issue to two fund houses – HDFC Mututal Fund and Franklin Templeton MF -- IL&FS investor relations head Danny Samuel said.
The MF investors will get 10 per cent coupon, he added.
"Initially, we bought the entire Rs 530-crore non-convertible debenture (NCD) issue from Andhra Pradesh Expressway and later on sold around 70-75 per cent to Mfs," Agarwal said, adding the issue was structured as a takeout financing scheme.
IL&FS' Samuel further said with the bond sales, the company has completely come out of bank loans. The project originally had a debt of a little over Rs 500 crore, including a term loan of Rs 398 crore, from a consortium of 10 banks including ICICI Bank, Canara Bank and bank of India.
Andhra Pradesh Expressway owns a concession for 74.6 km stretch on the NH 7, from the Kotakatta Bypass to Kurnool.
Under the concession agreement, the company is entitled to receive an annuity amount on a semi-annual basis from the National Highway Authority during concession period.
Agarwal said this is an opportunistic
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