Data InvIT raises nearly $1 bn in rare bond deal to fund ATC India purchase

Brookfield-backed Data Infrastructure Trust, an Indian infrastructure investment trust (InvIT), has raised $941 million via rupee bonds to fund the purchase of American Tower Corp's (ATC) local assets, per a term sheet seen by Reuters.

However, in what is a rare structure for the Indian market, only foreign investors are eligible to subscribe to Data Infrastructure's 79-billion-rupee issue, the term sheet showed.

Canada's Brookfield Asset Management had said at the start of the year that it would buy ATC's India operations, ATC Telecom Infrastructure, for $2.5 billion via the trust.

Since this funding is via a so-called downstream investment -- when an Indian company with foreign investment buys into another local firm -- only foreign portfolio investors are eligible to subscribe, the term sheet said.

Neither Data Infrastructure Trust nor Deutsche Bank and DBS Bank India, the arrangers for the issue, immediately responded to Reuters' request for comment.

The two series of bonds maturing in five years have a quarterly interest rate of 9.99 per cent, the term sheet showed.

About 30 per cent of the issue, or Rs 2,370 crore, is reserved for anchor investors.

Deutsche Bank, DBS Bank, BNP Paribas, Yash Fund and Deccan Funding are the anchor investors for the first series of bonds maturing on Sept. 9, 2029.

JP Morgan Chase Bank is the anchor investor for the second series of bonds maturing on Sept. 10, 2029, with a size of Rs 498 crore.

None of the anchor investors immediately replied to Reuters' request for comments.

Crisil and Careedge have rated the issue AAA and said the coupon will increase by 25 basis points for every notch rating downgrade.

Besides the bond issue, Data Infrastructure Trust will raise funds via bank loans and equity to fund the acquisition.

Rupee term loans and bonds of around Rs 4,900 crore have already been arranged, Careedge said.