Hinduja Group, which plans raise about Rs 7,300 crore through two-rupee bond offerings to partially fund its acquisition of Reliance Capital, has mandated 360 One to arrange Rs 5,000 crore through non-convertible debentures (NCDs). The remaining Rs 2,300 crore would be secured by Barclays.
The Hindujas have proposed zero coupon, interest cumulative debentures with a maturity period of four years. The interest rate will be 16% per annum. The group is also in discussions with Crisil, Icra and CARE for rating these NCDs, sources close to the development said.
At this interest rate, the redemption value of the NCDs after four years would be Rs 13,200 crore. The arrangers also want the bonds to be listed and get a minimum of two investment grade ratings, which would be BBB – for the NCDs, as per the global best practices, they added.
Hinduja Group had earlier mandated Barclays and 360 One as arrangers and underwriters to raise Rs 7,300 crore for the RCap deal. The arrangers had started the syndication process last week to seek investors, with the deal expected to be closed within a month.
Last week, the National Company Law Tribunal (NCLT) deferred a plea filed by Hinduja Group firm IndusInd International Holdings (IIHL) to extend the deadline to complete RCap’s resolution process to June 25. IIHL is the firm through which the Hinduja Group — the successful applicant for debt-laden firm — had placed its bids for RCap.
Earlier, Hinduja Group had proposed to change the holding structure of the firms through which it intends to takeover RCap. IIHL has proposed including of four new companies — Cyqure India Ecopolis Properties, Cyqurex Technologies and IIHL BFSI Holding — as part of the transaction.
IIHL had earlier tied up Rs 9,661 crore needed for the deal, of which 25% would be equity that would come from a subsidiary of the company, while the remaining 75% would be debt.