Cliffton/Delhi International Airport raised $450mn via a 4Y7M green bond at a yield of 6.25%, 25bp inside initial guidance of 6.5% area. The secured bonds have expected ratings of Ba3/BB, and received orders over $1.28bn, 2.8x issue size. Asia took 36% of the bonds, US 30%, EU 27% and the Middle East 7%. Fund managers bought 89%, banks 6% and private banks and corporates 5%. Proceeds will be used to subscribe to rupee denominated non-convertible debentures (NCDs) to be issued by Delhi International Airport (DIAL).  DIAL will in turn use the proceeds to refinance dollar bonds maturing in February 2022 and for capital expenditures purposes. Proceeds from the INR denominated NCDs will be allocated to an eligible green project portfolio under DIAL’s green finance framework, which has been reviewed by second-party opinion provider Cicero. DIAL also announced the results of their tender offer on its $288.75mn 6.125% 2022s where $105.422mn (36.51%) on the notes were tendered. It offered to pay $1,020 per $1,000 in principal plus accrued interest.

DIAL was downgraded by Fitch to BB from BB+ in January with a negative outlook on the back of low traffic volume in 2020 due to the pandemic and a prolonged recovery. DIAL’s senior secured USD 6.125% 2026s rated BB trades at 102.1, yielding 5.68% while their first lien USD 6.45% 2029s also rated BB, trades at 101.38, yielding 6.23%.

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