Samvardhana Motherson Unit Raises Rs 2,922 Crore Through Senior Notes
The notes by SMRC Automotive Holdings Netherlands B.V., a step-down subsidiary of the company, have a five-year tenure, and will be listed on the Frankfurt Stock Exchange.
A subsidiary of Samvardhana Motherson International Ltd. has raised $350 million through the allotment of U.S. dollar-denominated senior, secured and guaranteed notes, the Noida-based maker of automotive harnesses and rearview mirrors said in an exchange filing on Thursday.
The notes by SMRC Automotive Holdings Netherlands B.V., a step-down subsidiary of the company, have a five-year tenure and will be listed on the Frankfurt Stock Exchange.
The company has undertaken guarantee obligations over the notes, Samvardhana Motherson said.
The notes were issued at tight pricing, citing strong interest from investors, at a coupon of 5.625%. The issuance is debt neutral and the proceeds from the same will be used to repay existing debt.
This fundraising marks the return of Motherson Group's to the U.S. dollar bond market after eight years, the company said when it declared the successful pricing of the notes. It is their first issuance to receive a dual investment grade rating from the international rating agencies Moody’s and Fitch.
Shares of Samvardhana Motherson closed 1% higher at Rs 198.50 apiece, compared with a 0.03% decline in the NSE Nifty 50.
