Rolta raises $200 mn in overseas bond sale

Barclays, Citigroup, DBS and Deutsche Bank acted as the joint lead managers to the issue.

Mumbai: Rolta India on Friday said its fully-owned subsidiary Rolta LLC raised USD 200 million through a foreign bond sale at 10.75 percent coupon to refinance existing debt and meet working capital needs.

The five-year senior notes issue got an over subscription of two times, with demand from over 70 accounts globally, the company said in a statement.

The proceeds will also be used for general corporate purposes, it added.

So far, this year over a dozen domestic companies have raised over USD 9 billion in overseas debt, which is 90 percent of what India Inc raised in the entire 2012.

However, pricing of the Rolta issue is more than double as the average rate is 4.5-5 percent with the lowest coupon being HDFC Bank's 3 percent for a five-year dollar money.

Barclays, Citigroup, DBS and Deutsche Bank acted as the joint lead managers to the issue.

Commenting on the issue, company chairman and managing director KK Singh said, "we are very pleased to have set a new benchmark by successfully completing this offering, one of the first few high-yield bond issuances of its kind. We are also privileged to note the confidence that some of the world's largest and most sophisticated investors have placed in us."

The city-based software company said the issue was subscribed by asset managers (72 percent), banks (10 percent), and retail accounts (18 percent).

Geographically, the investor class included 47 percent from Asia, 43 percent from the US and the rest 10 percent from European investors.

The issue is guaranteed by Rolta and its subsidiaries Rolta International, Rolta Middle East, and Rolta UK, the company said.

The issue carries a BB-rating from S&P and Fitch and will be listed on the Singapore Exchange.

Rolta, present in over 45 markets, is a leading provider of innovative IT solutions for many vertical segments, including central and state governments, defense/homeland security, utilities, process, power, financial services, manufacturing, retail, and healthcare.

The company's GDRs are listed on the main board of the London Stock Exchange.

Shares of Rolta closed almost flat at Rs 59.80 apiece on the BSE today.


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