ATL to raise Rs 500 crore via offshore Masala bonds

The company has signed a purchase agreement with Credit Suisse AG, Singapore Branch for its Indian rupee denominated Masala bond

Adani Transmission Ltd (ATL) has plans to raise Rs 500 crore through offshore rupee-denominated Masala bonds.

"ATL has signed a purchase agreement with Credit Suisse AG, Singapore Branch for its Indian rupee denominated Masala bond of Rs 5,000,000,000 with a coupon of 9.10% senior secured notes due 2021 payable in US dollars (the Notes) to be alloted through a private placement offer to investors outside India and the United States," the company said in a filing.

Rupee denominated bonds are instruments through which Indian entities can raise funds by accessing overseas capital markets, while the bond investors hold the currency risk.

This is a rupee-based transaction and there is no foreign exchange exposure of the company, the company said adding that the notes will be listed on the Singapore Exchange Securities Trading Ltd.

"Moody's Investors Service has assigned a provisional (P) Baa3 rating to the notes...The proceeds of the notes, will be utilised in accordance with the guidelines issued by the RBI," it said.

ATL is the transmission business arm of the Indian business conglomerate Adani Group.