According to two merchant bankers on Monday, the holding company of Godrej Consumer Products in India is expected to access the corporate bond market for the third time in as many months by the end of October.
Key Highlights
- The Godrej Seeds & Genetics Ltd taps the bond market for a third issuance in three months, targeting ~US $230 million.
- The STRPP bonds will carry short maturities of three to four years and have an AA credit rating.
According to the bankers, Godrej Seeds and Genetics plans to sell shorter-term debt in order to raise 20 billion rupees ($229 million). The bonds will be issued in the form of separately transferable redeemable principal part (STRPP).
The STRPP bonds are expected to mature between three and four years from now.
The company, which is now involved in seed and agriculture-related trading activities, launched its debut bond offering in July, raising 20 billion rupees through the sale of STRPP bonds maturing from two years and nine months to three years and six months.
It followed up with another STRPP debt issue, raising 10 billion rupees through STRPP bonds with maturities of three years and three months and three years and six months, respectively, at an annual coupon of 7.99%.
Also Read: Godrej Properties Sells 683 Homes Worth over Rs 1,000 Cr in Hyderabad Project
Crisil has rated the bonds AA, and the company may complete the fundraising before the end of October.
The rating agency stated in its note that "the ratings continue to reflect strong financial flexibility arising from GSGL's position as a holding company of Godrej Consumer Products, the flagship company of the Godrej group."
