MakeMyTrip (MMT) on Friday said it raised $200 million through a zero per cent interest coupon bond.
The raise comes at a time when the travel industry is in the midst of difficult times. “This raise will bolster our cash reserves allowing us to meet the working capital requirements as business recovery gathers momentum and also pursue any investment opportunities in the growing Indian market,” said Group Chief Financial Officer Mohit Kabra.
The notes offering was upsized from the previously announced offering of $175 million in aggregate principal amount of the notes. MMT has granted the initial purchasers of the notes a 30-day option to buy up to an additional $30 million in aggregate principal amount of the notes. The sale of the notes to the initial purchasers is expected to settle on February 9, subject to customary closing conditions.
MMT intends to use the net proceeds for working capital and other general corporate purposes.
The company will use the notes offering as and when required, said Rajesh Magow, group chief executive of MakeMyTrip. “It is just to make our balance sheet stronger and have more cash reserves on our balance sheet... There is no real immediate deployment need that we have,” he said.
The notes will mature on February 15, 2028, unless earlier redeemed, repurchased or converted in accordance with their terms prior to such date.