 "Jain Irrigation to issue unsecured senior notes worth $200 mn")
"Jain Irrigation Systems Ltd DVR has informed BSE that Jain International Trading B.V (JITBV), the company's wholly owned direct subsidiary, proposes to issue up to $200 mn of unsecured senior notes (which will also be certified Green bonds) with a $50 mn over-allotment option, in relation to which the company propose to provide a guarantee (guarantee)," the company said in a BSE filing.
"However, issuance of guarantee is subject to successful issuance of the notes/bonds by JITBV, which will depend on the market conditions prevailing during the launch and agreement on terms between investors, the company and JITBV," it added.
The issuance of the guarantee has been principally approved by the board of directors at their meeting on January 14, 2017.
An unsecured note is a loan that is not secured by the issuer's assets. Unsecured notes are similar to debentures but offer a higher rate of return with less security than a debenture.
Senior notes are debt securities, or bonds, that take precedence over other unsecured notes in the event of bankruptcy.