Samvardhana Motherson Announces Pricing Of First $350 Million Dual Investment Grade Bonds

On July 3, Samvardhana Motherson International Ltd. declared the successful pricing of its secured guaranteed notes—144A/Reg S 5.625% US dollar senior, totaling $350 million, through its subsidiary—SMRC Automotive Holdings Netherlands B.V. (SAHN BV), with a corporate guarantee from SAMIL.

This fundraising through the issuance of notes marks the return of Motherson Group's to the US dollar bond market after eight years, according to an exchange filing on Thursday.

It is their first issuance to receive a dual investment grade rating from the international credit rating agencies, Moody's and Fitch.

The issue attracted a strong interest from multiple investors with peak orderbook in excess of $2.2 billion—demonstrating oversubscription of 6 times of the issue size.

This shows the confidence of the global investor community in the credit profile and strength of the Motherson Group, it said.

Transaction Highlights

• The notes were issued at tight pricing, citing strong interest from investors also translating into coupon of 5.625%. This will help the Motherson Group to enhance its borrowing costs.

• The issuance is debt neutral and the proceeds from the same will be used to repay existing debt.

• The transaction witnessed a balanced participation from investors across regions – Asia 40%, EMEA 38% and North America 22%.

• The notes will be listed on the Frankfurt Stock Exchange

The company is grateful to both customers and investors for their trust and confidence shown on them, according to Laksh Vaaman Sehgal, vice chairman at Motherson Group.

"“The success of this transaction is a testament of the Motherson Group's adherence to its prudent financial policies, underscored by recent rating upgrades by various international rating agencies."

Shares of Samvardhana Motherson International closed 0.56% higher at Rs 206.60 apiece, compared to a 0.08% rise in the benchmark BSE Sensex.