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.
-
Indian Markets Turning Corner After Two Tough Years, Says Sandeep Tandon -
NDTV Profit Ignite 2026: Experts See Opportunity In Equities, Stay Bullish For Long-Term -
Buy Right, Sit Tight Does Not Work for Individual Stocks, Says Dinshaw Irani -
'Worst Is Behind': Quant MF Sees Market Bottom, Flags 'Extreme Euphoria' In Midcaps -
India's Mutual Fund Industry Could Become A $1 Trillion Opportunity, Say Fund Managers -
'Foreign Investors Are Baraatis': Raamdeo Agrawal's Take On LTCG Tax -
Stay Invested Through Market Cycles: Raamdeo Agrawal at NDTV Profit Ignite -
Ramesh Damani Remains Bullish On India For Next 20-30 Years, Sees Bargains Amid Market Weakness -
CAS Came After A Long Consultation Process: SEBI Chairman Tuhin Kanta Pandey AT NDTV PROFIT IGNITE -
Aim To Cut FPI Onboarding Time From Mth To Five Days: SEBI Chairman Tuhin Kanta Pandey AT NDTV PROFI
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.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.