Steel Authority of India Ltd (SAIL) has privately placed Rs 185 crore of non-convertible debentures (NCDs) today. The bonds are guaranteed by the Central government and is rated LAAA(SO) by Icra.
The issue has three options. The first is a 7-year bond with a 5-year put and call options and a coupon of 10.10 per cent.
The second option is a 7-year bond with a coupon of 10.50 per cent, while the last is a 10-year bond with a 11 per cent coupon. Coupons on all options are payable annually.
The lead arrangers of the issue are AK Capital Services Ltd, Allianz Securities Ltd, Centrum Finance Ltd, Darashaw and Company Ltd, JM Morgan Stanley Ltd, R R Financial Consultants Ltd, SBI Capital Markets Ltd and Strategic Capital Corporation Private Ltd.
Even Grasim Industries, an AAA-rated company, has completed its Rs 50 crore of NCD issue today. Standard Chartered Bank was the sole arranger for the issue.
The issue had a 7-year maturity with put and call options after 5 years and had a coupon of 9.70 per cent, which was 70 basis points higher than the yield of the 5-year government paper.
