Non-bank financial company Capri Global Capital Limited announced the completion of the first-ever US Dollar bond sale under the Senior Secured Notes programme, raising $300 million in the market. The transaction is part of a $1 billion Global Medium Term Note (GMTN) program launched by the company.

It represents its maiden entry into the worldwide debt capital markets as a non-banking financial company. The Senior Secured Notes are listed at par at a fixed rate of 7.55% per annum and will expire in December 2029.

Inaugural offshore and geographical distribution

The bond sale was issued for the first time to attract institutional investors with strong interest, and the sale was oversubscribed by 2.3 times. The total amount of orders received for the issue amounted to more than $700 million from 64 quality international accounts. 

Market specialists remarked that it was among the biggest share allocations to international hard cash investors for recent non-financial enterprise issue offerings from the nation. The offshore transaction was managed by a leading global banking consortium: Barclays, Citi, Deutsche Bank, Emirates NBD and UBS.

The $300 million bond offering showed diversification among traders around the world. The debt placement went to the greatest extent to investors in the United States, accounting for 49% of total debt allocations. Asian institutions received 39% of the notes, and the remaining 12% went to investors from across Europe, the Middle East, and Africa.

An analysis of the investor base reveals robust demand from institutional asset managers. The final bond allocation was concentrated among asset managers and fund managers, who accounted for 91%. Insurers made up 5% of the entire distribution; commercial banks and private banks made up the balance of 4% of all the debt notes.

Leadership and strategic impact

Rajesh Sharma, Managing Director of Capri Global Capital Limited, noted that the company has already received a strong response from marquee international institutional investors. It is a positive validation of the underlying creditworthiness and overall business model of the company on the initial dollar bond issue. He also emphasized that the transaction represents the non-bank lender successfully diversifying its funding sources from internal capital sources to deep pools of capital in the global market.

The funds raised through the senior secured issuance will be used as per the directive laid down by the Reserve Bank of India in compliance with the regulatory guidelines for carrying on lending operations and business development. The offshore bond issue expands Capri Global Capital’s capital structure and provides a baseline yield curve for future international borrowings within Capri Global Capital’s existing medium-term note program structure. 

Conclusion

The $300 million bond sale in US dollars was the inaugural operation of its kind for Capri Global Capital Limited, a non-banking financial company (NBFC). The 7.55% Senior Secured notes due 2029 have reached maturity in this fourth year and came oversubscribed by over $700 million, backed by investor confidence from 64 institutional buyers.

The transaction will allow Capri Global Capital to effectively diversify its funding and bolster its long-term growth and liquidity profile, which will be supported by an international banking syndicate and wide asset manager demand in the US and Asian markets.