India's Samvardhana Motherson unit gives initial price guidance for dollar bonds, bankers say
MUMBAI, July 3 (Reuters) -A unit of Indian auto parts maker Samvardhana Motherson International SAMD.NS is planning to raise funds through the sale of five-year dollar-denominated bonds and has provided an initial price guidance, two bankers said on Wednesday.
SMRC Automotive Holdings Netherlands B.V. has given the initial price guidance of a spread of 175 basis points over the five-year U.S. Treasury yield, they said.
The five-year U.S. bond yield was around 4.40%.
The unit plans to raise $500 million through the sale of dollar bonds and had mandated bankers for the issue in June.
The coupon on the notes would be finalised later this week.
BNP Paribas, Citigroup, HSBC, J.P. Morgan and MUFG are the joint global coordinators and joint lead managers while DBS Bank and Standard Chartered Bank are the joint lead managers for the issue.
Samvardhana Motherson International is the guarantor for the proposed notes, which are expected to be rated Baa3 by Moody's and BBB- by Fitch.
Reporting by Bhakti Tambe; Editing by Mrigank Dhaniwala
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