Two subsidiaries of India’s Jubilant Bhartia Group will raise an aggregate of 56.50 billion rupees ($660.4 million) through zero-coupon bonds to fund the acquisition of a stake in Hindustan Coca-Cola Holdings, three merchant bankers said on Thursday.
Jubilant Bevco is planning to raise 30 billion rupees at a yield of 9.15%, while Jubilant Beverages is aiming to raise 26.50 billion rupees at 9%, the bankers said.
Both the companies are issuing three-year bonds and have invited bids from investors on June 4. The bonds are rated AA by Crisil.
Jubilant Bhartia Group is aiming to acquire a 40% stake in Hindustan Coca-Cola Holdings, which is the parent of Hindustan Coca-Cola Beverages, the distributor of Coca-Cola KO.N in India.
Jubilant Bhartia Group did not reply to a Reuters email seeking comment.
The acquisition of the stake will lead to an outgo of 126.50 billion rupees, which will be funded through a mix of debt, compulsorily convertible preference shares from a private capital provider and rest as equity from the group, Crisil said in a rating note.
Anchor investors have invested an aggregate of 16.95 billion rupees in bonds of both the issuers.
The anchor investors include HDFC Mutual Fund, Nippon India Mutual Fund, Franklin Templeton Mutual Fund, Aditya Birla Sun Life Mutual Fund, Axis Mutual Fund, Kotak Mahindra Mutual Fund, Nomura Fixed Income Securities and Bajaj Finance BJFN.NS.
These investors are expected to invest more at the time of bidding, the bankers said.
None of the entities replied to Reuters’ emails seeking comment.
($1 = 85.5530 Indian rupees)
Reuters
