Capri Global taps dollar market with debut debt issue after banks hit pause

According to Business Recorder, citing two merchant bankers, India's Capri Global Capital has started the process to borrow in dollars, which would mark its first foreign currency debt issue. The non-banking financial company is targeting between $300 million and $500 million through bonds with a tenor of three years and three months, and initial price guidance sits near 7.75%. The bankers spoke on condition of anonymity, and the company had not answered a query sent by Reuters via email.

The move follows a June attempt, when the company appointed bankers and held investor calls but did not proceed because pricing turned out less favourable than it had expected. At that time investors were looking toward large debt supply from better-rated Indian lenders. One banker said the rush by banks to raise dollars appears largely finished, which could open the market to other firms that have already completed their preparatory work.

Fitch Ratings assigned the proposed senior secured dollar bonds an expected rating of BB-(EXP), and they will sit under a $1 billion global medium-term note programme. Indian lenders raised $12.15 billion through dollar bonds between June and August under the Reserve Bank of India's discounted swap window. ICICI Bank was the latest, with $500 million privately placed at a 5.3080% coupon, and private lenders accounted for $9.15 billion, more than 75% of the total.