Motherson raises USD 100 mn from overseas bond sale

Auto ancillary player Samvardhana Motherson Group has raised USD 100 million in debt by selling bonds to overseas investors.

The 5.5-year US dollar bond issue by Samvardhana Motherson Group has received an order book of USD 400 million against the USD 100 million on offer, helping the Noida-based company price the issue at lower 4.44 per cent coupon, against the initial guidance of 4.5 per cent, a merchant banking source told PTI.

The Reg S bonds will be listed on the Irish Stock Exchange, the sources added.

Samvardhana Motherson Group could not be immediately contacted.

The company has mandated Barclays, HSBC and Standard Chartered as joint managers to the issue.

While as many as 81 per cent investors were from Asia and the rest from Europe, and 63 per cent of them were fund managers, 31 per cent banks and 6 per cent of investors were private banks, the merchant bankers said.

Founded in 1975, the over USD 7.2 billion Samvardhana Motherson has a diversified industry-leading portfolio of auto ancillary products and services like electrical distribution systems, automotive rearview mirrors, polymer processing, lighting systems, air intake manifolds and HVAC systems among others.

The Nodia-based group has operations in 25 countries across the Americas, Europe, South Africa, West Asia, Asia-Pacific and Australia and has over 180 facilities and 24 design centres across the globe.