HPCL-Mittal Energy (HMEL), a joint venture between Hindustan Petroleum Corporation and Mittal Energy Investment, Singapore, raised $300 million on Tuesday by selling bonds to offshore investors.
The company plans to use the proceeds to refinance its high cost debt, a move that should cut its borrowing costs. It obtained an order book of about $1.5 billion as global asset managers, hedge funds, private banks bet on such high-yield papers.
The bonds yielded 5.45 per cent at the close of subscription amid high investor demand. It initially planned to offer 5.75 per cent with the same seven-year maturity. HSBC, JPMorgan and Barclays are some of the investment banks that helped the company raise the money. Such bonds are known as Regulation S, where investors outside US can subscribe the papers.
Source: Economic Times