IRB Infra lists $540 Million foreign currency bonds on ′India INX′

OVERVIEW-

• IRB Infrastructure Developers Ltd (IRB) on February 22 said its board of directors has approved a fundraise of up to $540 million through foreign currency bonds. - The bonds, carrying a coupon rate of 7.11%, are set to mature in eight years, marking a significant milestone in IRB's quest for diversified funding sources. - The bonds are listed on the India International Exchange (IFSC) Limited (“India INX”) India’s international stock exchange at the GIFT City.

IRB INFRASTRUCTURE DEVELOPMENT LTD-

• IRB Infrastructure Development Ltd is India’s leading and the largest integrated and the first multinational transport infrastructure developer in the roads and highways sector. - It has established its presence majorly in the Build-Operate-Transfer (BOT) space, carrying high pride to be part of India’s transformation.

UNPRECEDENTED INVESTOR INTEREST-

• The issuance witnessed an overwhelming response, with bids surpassing $2 billion, indicating an oversubscription by approximately four times. - More than 115 investors globally participated in the issuance.

STRATEGIC FINANCIAL PLANNING-

• With a weighted average life of seven years and three months, these bonds offer a yield of 7.125%, positioning them as an attractive investment. - The involvement of prominent financial institutions such as Deutsche Bank, Barclays, and Citigroup as joint bookrunners further adds to the issue's credibility. - Anticipated ratings from Fitch and Moody's at BB+ and Ba2 respectively, signal the bonds' investment-grade status, offering reassurance to potential investors about the quality of this financial instrument.

MANY FIRSTS TO ITS CREDIT-

• The transaction is a debut USD Bonds Offering by IRB. - The Issue is the maiden issuance by the Issuer in the international debt capital markets. - The Issue was oversubscribed and witnessed a thumping investor interest amongst sophisticated investors, especially, anchor investors in the US and Asia Pacific. - It’s the first USD Rule 144A Bonds issuance by a corporate, especially an Indian infrastructure development and construction multi-national company. - It is the second High Yield Rule 144A Bonds issuance from out of India in 2024 in the global debt capital markets.

CONCLUSION-

• The global recognition and trust reflected in this oversubscribed issue pave the way for IRB to continue its contribution to India's infrastructure development. - With light touch regulations of IFSCA, Gift City is pacing towards becoming the preferred destination for fund raising and listing of foreign currency bonds. - Also, these bonds being exclusively listed on India International Exchange (IFSC) Ltd. will give confidence to various issuers and investors to follow.