Samvardhana Motherson Secures Landmark $350 Million in Oversubscribed Bond Issue

Auto components maker Samvardhana Motherson International Ltd has raised $350 million through notes issued by its subsidiary. The issue, oversubscribed six times, marks the company's return to the USD bond market after 8 years. The funds will be used to repay existing debt, and the notes will be listed on the Frankfurt Stock Exchange.

Auto components maker Samvardhana Motherson International Ltd (SAMIL) announced on Friday that it has successfully raised USD 350 million (approximately Rs 2,920 crore) through the issuance of notes.

The notes were issued by SAMIL's step-down subsidiary, SMRC Automotive Holdings Netherlands BV (SAHN BV), and are backed by a corporate guarantee from the parent company. This issue saw overwhelming interest, being oversubscribed six times with a peak order book exceeding USD 2.2 billion.

This is a significant milestone for the Motherson Group, marking its return to the USD bond market after an eight-year hiatus, now with dual investment-grade ratings from Moody's and Fitch. Proceeds from this issuance will be used to repay existing debt, rendering the issuance debt-neutral. The notes are set to be listed on the Frankfurt Stock Exchange. 'The success of this transaction underlines Motherson Group's commitment to prudent financial policies,' stated Group Vice Chairman Laksh Vaaman Sehgal.

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