New Delhi: In the first such bond issue under the new Reserve Bank of India (RBI) guidelines notified on Monday, GMR Infrastructure will get Rs 2,000 crore ($300 million) from Kuwait Investment Authority (KIA). It is the largest bilateral investment between India and the West Asian country in recent times.
The two sides signed a definitive agreement on Tuesday under which the Kuwaiti authority would subscribe to a 60-year-long Foreign Currency Convertible Bond (FCCB) due 2075 to be issued by GMR Infrastructure, the flagship company of the GMR Group.
GMR’s FCCB issuance is the longest tenor convertible issuance out of India and will have several “equity-like” features such as long tenor, unsecured and subordinated status and mandatory conversion, said a company statement.
Such features are generally seen in perpetual-type issuances. So far, the longest tenor bonds have been issued by Reliance Industries Ltd (99 years) and the Tatas but they were rupee bonds.
05/12/15 Business Standard
To Read the News in full at Source, Click the Headline
The two sides signed a definitive agreement on Tuesday under which the Kuwaiti authority would subscribe to a 60-year-long Foreign Currency Convertible Bond (FCCB) due 2075 to be issued by GMR Infrastructure, the flagship company of the GMR Group.
GMR’s FCCB issuance is the longest tenor convertible issuance out of India and will have several “equity-like” features such as long tenor, unsecured and subordinated status and mandatory conversion, said a company statement.
Such features are generally seen in perpetual-type issuances. So far, the longest tenor bonds have been issued by Reliance Industries Ltd (99 years) and the Tatas but they were rupee bonds.
05/12/15 Business Standard
