Digital Assets in Capital Markets

Advanced course on digital assets - assets created using a blockchain/DLT network - designed for finance professionals.

IBF-STS Recognised
8 CPD Hours

20 July 2022 (Wednesday) | 9am-5pm

Indian financial services company IIFL Finance bought-back $50mn of its 5.875% dollar bonds due 2023. IIFL Finance funded the buyback via an offshore short-term overseas loan facility extended by HSBC. The 5.875% 2023s were issued in February 2020 with IIFL raising $400mn. Post the latest round of buybacks, the amount outstanding stands at $323.7. The buyback was conducted under a modified Dutch auction process. The minimum bid price for bondholders for the tender offer was $970/bond for a face value of $1000. When the buyback was planned in late March, IIFL said it expects to save 200bps in capital costs through the buyback.

IIFL Finance dollar bonds were trading higher, its 5.875% 2023s up over 0.25 points to 98.25 yielding 7.67%.

Separately, India’s state-run Bharat Petroleum (BPCL) has obtained consent from holders of three of its outstanding dollar bonds – its 4.625% 2022s, 4% 2025s, and 4.375% 2027s. The approval clears the way for a proposed amalgamation of two wholly subsidiaries Bharat Oman Refineries and Bharat Gas Resources into the company. The consent solicitation, launched on March 11, had sought approval to amend certain terms such that the amalgamations will not constitute an event of default. Under the exercise, a quorum of creditors holding over 50% of the outstanding notes was required for creditor meetings on April 4. The company said the resolutions were passed at the creditor meetings, where more than 75% had voted in favor. The consent solicitation ended on March 30. Noteholders who had submitted votes by the early deadline of March 24 to pass the resolutions will receive a fee of $1 per $1,000 principal amount of each of bond but no fee will be paid after that date

BPCL’s dollar bonds were trading lower, its 4% 2025 down over 0.28 points to 99.40 yielding 4.21%.

Show Buttons
Hide Buttons