Hella Infra Agrees to Place INR 12.5B, Multi-Tranche NCDs at ~15% IRR With Ascertis Credit to Mainly Refi High-Cost Kotak Alternate Debt

Reporting: Bhakti Tambe, Malvika Joshi Indian construction material solutions company Hella Infra Market Ltd. has agreed to privately place INR 12.5 billion rupees ($138.4 million), senior, secured, non-convertible debentures, or NCDs, in multiple tranches with Ascertis Credit, fka BPEA Credit, for debt refinancing, according to a source close to and a source familiar with the matter. The NCDs will be issued in tranches with tenors varying between two and six years, and a blended internal rate of return of 14%-15%, the source close said. The Maharashtra-based building material manufacturer will use part of the proceeds to refinance some of the “high cost” NCDs issued by the company and its subsidiaries, the source close said. The NCDs being refinanced are primarily held by Kotak Alternate Asset Managers, the source familiar said. The two sources did not elaborate on how much proceeds Hella intends to utilise towards refinancing of the Kotak Alternate NCDs. According to the Ministry of Corporate Affairs, or MCA, documents reviewed by Octus, Hella’s board on Jan. 23 approved the INR 12.5 billion debt raise via senior, secured, unlisted and unrated NCDs in one or more tranches. Hella Infra has already placed a first tranche of INR 1.51 billion,[...]