The proposed bond issue is expected to be priced at about 9.50%, although the final coupon is yet to be determined and will depend on market conditions and investor demand, they said.
The proceeds will be used to refinance DIAL's existing dollar-denominated notes of $522.6 million that are due this year, along with transaction and hedging costs related to the existing debt and the new bond issue. DIAL had raised $522.6 million through 10-year international bonds in October 2016 at a coupon of 6.125%.
In a significant regulatory shift, Sebi is set to increase the cap on the number of annual debt security ISINs maturing. This initiative is designed to alleviate liquidity challenges and refinancing stress faced by Non-Banking Financial Companies (NBFCs) and major corporations. Furthermore, Sebi recommends exempting ESG debt securities from these limitations and advocates for the removal of mandatory listing on all previous unlisted debt offerings.
"The refinancing will allow DIAL to replace the maturing dollar debt with long term rupee funding, while spreading repayment over several years," said one of the persons, who did not wish to be identified. "The structure also gives the airport operator the flexibility to refinance or redeem the bonds after five years."
Read Also:Info Edge Q1 Results: Standalone Profit falls 6% YoY to Rs 245 crore
(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)
Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today.
Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price
(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)
Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today.
Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price