By IndiaHub 
About a dozen large investors – some using multiple funds – bought zero-coupon rupee bonds that offer a yield of 19.75%, the people said, asking not to be identified because the information is private. The debt matures in three years.
Top investors include Ares Management Corp, Cerberus Capital Management, Davidson Kempner Capital Management and Farallon Capital Management, people said. Deutsche Bank acted as the sole arranger of the deal and also invested in it.
AdPorts and Special Economic Zone has secured Rs 5,000 crore through a 15-year Non-Convertible Debenture. The issue was fully subscribed by LIC at a competitive rate. This move enhances APSEZ’s debt maturity profile. The proceeds will fund a proposed buyback of US Dollar bonds. APSEZ aims to handle 1 billion tonnes of cargo by 2029-30.
Deutsche invested about $900 million and will down-sell a portion of the debt, the people said, adding that Cerberus and Davidson bought about $475 million and $425 million worth of bonds, respectively.
Indian investors also participated in the deal, with ASK Wealth Advisors and some family offices buying a portion of the offering, the people said. EAAA India Alternatives Ltd., one of the country’s largest domestic private credit funds, bought about $85 million of the bonds, said one of the people.
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The financing is a landmark in India’s growing private credit industry, which is getting a boost as Prime Minister Narendra Modi’s infrastructure push increases funding demands for everything from solar power to roads.A representative for Shapoorji didn’t immediately respond to requests for comment outside of normal business hours. Davidson Kempner declined to comment. Ares, Cerberus, Farallon, EAAA and ASK did not immediately reply to Bloomberg’s requests seeking comments.