Piramal's Strategic Global Bond Sale: A $150 Million Milestone

Piramal Capital and Housing Finance raised $150 million through a bond sale, achieving better pricing than a prior issuance. Subscriptions reached $520 million, with 92% of funds sourced from Asia. The company aims for 10-12% international borrowing in coming years to tap into India's growth opportunities.

Piramal Capital and Housing Finance announced on Friday the successful raising of USD 150 million via a global bond sale.

According to the company statement, the bonds will be issued at a yield of 7.078%, with a maturity of 3.32 years. This marks a 0.87% improvement in yield compared to a similar issuance from July 2024 that fetched a yield of 7.950%.

Demonstrating strong investor interest, the recent issuance was oversubscribed 3.5 times, attracting subscriptions worth USD 520 million from 40 investors. Notably, 92% of the funds were sourced from Asia, with the remainder from Europe, the Middle East, and Africa. Asset managers contributed 95% of the backing, with banks accounting for the rest.

Managing Director Jairam Sridharan expressed intent to increase international borrowing to 10-12% over the next two to three years as part of the company's strategy to engage global investors in India's promising economic landscape.

On the market front, shares of Piramal Enterprises experienced a 2.22% decrease, closing at Rs 1,033.05 on the BSE, against a broader market correction of 0.98% on the benchmark index.

(With inputs from agencies.)